����

INDIAN RAILWAYS

ISO 9001ISO 14001OHSAS 18001

DIESEL LOCOMOTIVE WORKS (D.L.W.)

VARANASI (U.P.) INDIA

BID DOCUMENTS

FAX : 0542-2270603, 2271654TELEX : 0542-230 DLW-IN

TELEPHONE (1) 2270-551-555.CABLE/TELEGRAM : “DIESELOCO”

SECTION-I INSTRUCTIONS TO TENDERERS TABLE OF CONTENTS

Clause Page No.

1. General instruction 1-32. Technical information 43. Agents and service facilities in India-Agency commission 4-54. Qualifying requirement of tenderers 5-65. Time schedule 66. Earnest Money / Bid Guarantee 67. Submission of offers 78. Local conditions 89. Deleted 8

10. Price basis & indemnity 8-911. Insurance 912. Evaluation of the offers 9-1013. Payment terms 10-1114. Deductions 1115. Payment procedure 11-1216. Shipping arrangements 1217. Packing 12-1318. Import licence 1319. Acceptance of tender 1320. Effect and validity of offer 1321. Spare parts 1322. Income-tax clearance certificate 1423. General 1424. Last date of receipt of tenders 14

INSTRUCTIONS TO TENDERERS

1. GENERAL INSTRUCTIONS1.1 On behalf of the President of India, the Controller of Stores, Diesel Locomotive Works, Varanasi (U.P.) (hereinafter referred to as the Purchaser), invites tenders from established and reliable manufacturers for supply as set forth in the "Schedule of Requirements". For this Pur pose, manufacturers of assemblies / locomotives employing the items are also considered as manufacturers.1.2 All offers in the prescribed format Annexure 1 or 2 (as applicable), should be submitted before the time and date fixed for the receipt of offers as set forth in the tender papers. Offers received after the stipulated time and date, are liable to be rejected.1.3 Wherever all or most of the approved firms quote equal rates and cartel formation is suspected, Rilways reserve the right to place order on one or more firms with exclusion of the rest without assigning any reasons thereof. In such cases Railways also reserve the right to place regular bulk quantity order on Part-11and new sources.1.4 The Tenderer should quote the exact percentage of VAT that they will be charging extra.1.5 While quoting the rates, tenderer should pass on (by way of reduction in prices) the set off/input tax credit that would become available to them by switching over to the system of VAT from the existing system of sales tax, duty stating the quantum of such credit per unit of the item quoted for.1.6 The tenderer while quoting for tenders should give the following declaration."We agree to pass on such additional set off/input tax credit as may become available in future in respect of all the inputs used in the manufacture of the final product on the date of supply under the VAT scheme by way of reduction in price and advise the purchaser accordingly".1.7 The suppliers while claiming the payment will furnish the following certificate to the paying authorities."We hereby declare that additional set offs/input tax credit to the tune of Rs. ..........has accrued and accordingly the same is being passed on to the purchaser and to that effect the payable amount may be adjusted".1.8 Even for contracts where CST is payable, this input tax credit may become admissible to the supplies where the supplier happens to be located in the state in which VAT has been implemented. Accordingly the certificate under para (6) above should also be obtained in all such existing contracts where CST is payable.1.9 For the states in which the VAT has not yet been introduced, the existing system of sales tax shall continue.1.10 (i) Offer received through fax will be considered in case of procurement of items

through proprietary article certificate & single tender only subject to the firm submitting post confirmation copy on their letter head duly signed by authorized person as per the tender conditions within ten working days form the date of opening.

(ii) However, for other type of tenders, offers received through fax and found in the tender box at the time of opening of tenders and complete in all respects and duly

signed by the authorised signatory will be treated as in time offer subject ot the firm/firm's submitting post confirmation copy duly singned by the authorized person as per the tender conditions within ten working days from the date of opening.

(iii) All other offers received by fax not covered in Para (i) & (ii) above will be treated as invalid. The offers received by fax as covered in Para (ii) above will be deemed as unresponsive in case the confirmation copy is not received within the time stipulated in Para (ii) above.

(iv) No. purchase order will be issued against the FAX offer without receipt of the confir mation copy of the same.

(v) It shall be the sole responsibility of tenderers to ensure that the offers submitted by FAX are dropped in appropriate tender box in sealed cover/covers and within the prescribed time and date. the Railway shall not be responsible in any way for any delay in dropping the FAX offers in the appropriate tender box.

1.11 Any Indian Agent of Foreign Supplier cannot represent two suppliers or quote on their behalf.

Note :-1. Late, delayed & incomplete offer are liable to be summarily rejected.2. Bid from tenderer who have not purchased the Bid documents and their offer is not

accompanied with Bid Guarantee are liable to be summarily rejected.3. In case the date of tender opening falls on a Gazetted holidays or is subsquently

declared as such, the tenders will be opened on the next working day at the fixed time.4. The tenderers should quote on the basis of instruction to tenders and General and

Special condition of contract given in the Bid documents.5. The tender should be valid for a minimum period of 150 (One hundred Fifty only) days

from the date of opening.6.0 Tenderer should indicate their specific agreement to the following terms & conditions

while submitting their offer :6.1 Payment terms : To accept payment terms as indicated clause 13 section-I page 10 of

Bid documents. For negotiating the payment through L.C., document as per 6.7 will be required.

6.2 Performance Bank guarantee : PBG of 10% of value as per clause 21 of section-II page7 of Bid document.

6.3 After a letter of acceptance is issued by the purchaser, the contractor shall furnish a performance guarantee bond in the proforma attached (Ann-12) from a Nationalized bank or scheduled commercial foreign bank branches operating in Indian governed by reserve Bank of India guidelines of foreign bank duly counter-signed by a Nationalized Indian bank within 15 days from the receipt of the letter of acceptance of the tender by the contractor or the execution of the contract, whichever is earlier, for an amount of equivalent to 10% of the value of the contract in the same currency of the contract price. The expensed to be incurred for the counter signature of a nationalized bank shall be borne by the contractor. On the performance and completion of the contract in all

the aspects the performance Guarantee Bond will be returned to the contractor without any interest. In case furnishing of an acceptance performance guarantee bond is delayed by the contractor beyond the period provided above and bond is accepted by the purchaser Iiquidated damages, as provided clause-18 for a period of delay in submission of the bond, may be levied. Alternatively, the purchaser may declare the contract as at an end and enforce clause-19.

6.4 Default Clause : To accept LD/RP clause as detailed in clause 17 & 18 section II, page4 & 5 of Bid document.

6.5 Warranty period/warranty Bank Guarantee : WBG as per clause 9 of section III, page 4 of Bid Document. The confirmation regarding warranty period of 30/24 months specifically required.

6.6 The tenderer must give specific acceptance to clause 24.1 of section-II page 9 of BidDocument.

6.7 In case Tenderer himself is not manufacturer of the item, they must attach valid authorisation certificate and proforma quotation from their principal.

6.8 When payment is made through letter of credit, LC opening charges will be on DLWaccount. The payment will be negotiated against documents as below :

i) Contractor's detailed invoice showing quantity, description/part no of the material as per contract, rates and total price of the materials delivered FOB.

ii) Manufacturer's work test certificate issued by manufacturers.iii) Non-negotiable Ocean Bill of Lading drawn in favour of port consignee CMM (BI),

E.RIy. 3rd. floor, 3 Koilaghat street, Kolkata.iv) One copy of the packing list indicating contents of the materials Boxwise, marking, net

weight, gross weight and over all dimension.v) A certificate showing the country of origin of materials supplied.

vi) Cerfificate alongwith a copy of Telex/Fax stating that the original shipping documents have been forwarded to the port consignee in India by first class airmail. Also copies of shipping documents viz bill of lading, country of origin, invoice, packing list and WTC have been sent to their agencies as per terms and conditions of this contract. Documentary proof in the form of postal/courier receipt should accompany the certificate.

vii) Certificate that the Dy. CMM (D)/DLW/Varanasi, Insurance Company and parchaser have been advice of the closing particulars of shipment by Fax/Telex/Cables.

viii) Certificate that the firm shall comply with the warranty obligation under this contract pursuant to the warranty.

ix) The all European manufacturer (S) shall prepare a quality plan in confirmity with ISO-9000-2000 and submit it to the Railway Adviser, sufficiently in advance of inspection. The inspection shall proceed only after acceptance of the PO by Railway Adviser.

x) All the vendors/suppliers must submit the Works Test Certificate (WTC) that the material has already been calibrated and tested at the case may be alongwith material of the placement of P.O.

1.3 All information in the offer must be in English. Information in any other language must be accompanied by its authenticated translation in English; failure to comply with this may

render the offer liable to be rejected. In the event of any discrepancey between an offer in a language other than English and its English translation, the English translation will prevail.1.4 "All safety provisions and other precautions as detailed in clauses of OHSAS18001:1999 must be ensured by visitor (s)/contractor (s) or his (their) authorised agent (s)e.g. safety shoes (foot gear), Safety Helmet (head gear), Mask (face gear), Ear Plugs/Muffs(face gear), as applicable from place to place inside the shop."

2. TECHNICAL INFORMATION2.1. Specifications indicated in the "Schedule of Requirements" may be obtained on payment from the follwing.

(i) Indian Railway Standard Specifications from(a) The Controller of Publications, Civil Lines, New Delhi - 110054, India.(b) Office of the High Commissioner for India, Publication Branch, India - House

: Aldwyc, London-WC.(ii) Indian Standard Specifications from

The Director General, Indian Standard Institution, Manak Bhawan, 9 Bahadur Shah Zafar Marg,New Delhi - 110001, INDIA

(iii) Particular Specifications, drawings and details fromThe Controller of Stores, Diesel Locomotive Works, Varanasi (U.P.), India.

2.2. The equipments offered should be in accordance with the stipulated drawings and specifications in "Schedule of Requirements". Details of variations from the drawings and specifications, if any, should be clearly indicated and in such an event, a certificate from the users must be furnished to the effect that the product offered is and alternative acceptable to the users in the country of origin and in one or more other countries. The names of users in those foreign countries should also be indicated.2.3 The purchaser will accept internationally accepted alternative specifications which ensure equal or higher quality than the specifications mentioned in the tender specifications. However, the decision of the purchaser in this regard shall be final. In this connection attention of tenderer is invited to the "Statement of Deviations" from tender specifications (Annexure-II) which should invariably be filled in and submitted along with the offer and further two copies of the alternative specifications offered should be sent alongwith the offer.2.4. The tenderer shall indicate his compliance or otherwise against each clause and subclause of the technical specifications. The tenderer shall, for this purpose, enclose a separate statement (Annexure-II) indicating compliance or otherwise of each clause and sub- clause of specifications. whenever the tenderer deviates from the provisions of a clause/sub- clause, he shall furnish his detailed justification for the same in the "Remarks" column.

3. AGENTS AND SERVICE FACILITIES IN INDIA-AGENCY COMMISSION3.1. "Foreign firms quoting direct against the enquiry and who want Indian Agent/Associates and/or servicing facilities in India should indicate in their offer the name of their Indian

Agents/Associates or the representatives they have for servicing in India, They should quote net FOB/FAS price, exclusive of the amount of remuneration or commission provided for the Indian Agents/Associates, It should be understood that the purchaser will indemnify the supplier against payment of such commission to the Indian Agents/Associates in rupees in India irrespect of a contract arising out of invitation to Tender, where the Indian Agent/Associates remuneration/or commission covers a part of the price against the Tender."3.2. The following particulars are also required to be furnished by Tenderers failing which their offers are liable to be ignored :-

(i) The precise relationship between the foreign manufacturers/principals and theirIndian Agent/Associates,

(ii) The mutual interest which the manufacturers/principals and the IndianAgents/Associates have in the business of each other.

(iii) Any payment which the Agent/Associate receives in India or abroad from the Manufacture/principal whether as a commission for the contract or as a general retainer fee;

(iv) Indian Agent's Income-tax payment account number;(v) All services to be rendered by the Agent/Associate whether of general nature or in

relation to the particular contract and the facilities/infrastructure available with them for the same.

(vi) Past Performance.3.3 The Agency commission payable by the Tenderer to his Indian Agents shall be indicated in the offer form in foreign currency. However, Agency commission finally payable to the Tenderers agents in India under the contract will be converted to Indian rupees at the telegraphic transfer buying rate of exchange ruling on the date of acceptance of offer and shall not be subject to any further exchange variation. The agency commission shall be paid in non-convertible Indian rupees only after successful completion of the contract. Commissioning of the machines or equipment wherever involved.3.4 For the foreign Tenderer's guidance in furnishing complete information, a check list, as per Annexure- 15 attached, which must be completed by the foreign Tenderers participating in the Tender.

4. QUALIFYING REQUIREMENTS OF TENDERERS4.1. The tenderer shall provide a satisfactory evidence acceptable to the Purchaser to show that-

(a) he is a licensed manufacturer, who regularly manufactures the items offered and has adequate technical knowledge and practical experience.

(b) he has adequate financial stability and status to meet the obligations under the contract for which he is required to submit a report from a recognised bank or a financial institution.

(c) he has adequate plant and manufacturing capacity to manufacture and supply the items offered within the delivery schedule offered by him;

(d) he has established quality control system and organization to ensure that there is adequate control at all stages of the manufacturing process.

4.2 For purposes of para-4.1. the tenderers should additionally submit-

(a) a performance statement as in Annexure-3, giving a list of major supplies, effected in the recent past, of the items offered by him giving details of the purchaser's name and address, order No. and date and the quantity supplied and whether the supply was made within the delivery schedule;

(b) a statement indicating details of equipment employed and quality control measures adopted as in Annexure-4

4.3. In addition to the above, information regarding his capacity / capability, if required by the purchaser shall be promptly furnished by the tenderer.4.4. Tenderer not submitting the requisite information may note that his offer is liable to be ignored.

5. TIME SCHEDULE5.1. The basic consideration and the essence of the contract shall be the strict adherence to the time schedule for the supply of item/items offered.5.2. The time and the date specified in the contract for the delivery of the stores and equipment shall be deemed to be the essence of the contract and the delivery must be completed not later than the date so specified. The attention of the tenderers is invited to clauses regarding liquidated damages and default in the General Conditions of Contract by which the contract shall be governed.

6. EARNEST MONEY/BID GUARANTEE6.1. An Earnest Money/Bid Guarantee for amount as stipulated in the "Schedule of Requirements" shall accompany each tender in Indian Rupees or an equivalent amount in the currency of the country of the tenderer. The Earnest Money/Bid Guarantee shall be in any one of the following alternative forms subject to the approval of the purchaser.

(a) A crossed Bank Draft in favour of the Financial Advisor and Chief Accounts Officer, Diesel Locomotive Works, Varanasi (U.P.) India, from a Nationalised Indian Bank or a reputable Commercial Bank of the tenderer's country.

(b) An irrevocable Bank guarantee or irrevocable letter of credit of any Nationalised Indian Bank or reputable Commercial Bank of the tenderers' country in favour of the purchaser in the form attached (Annexure-06)

6.2. The Earnest Money-Bid Guarantee shall remain deposited with the purchaser for the period of 180 days from the date of opening of Tenders. If the validity of the offer is extended, Earnest Money Deposit/Bank Guarantee duly extended shall also be furnished failing which the offer after the expiry of the aforesaid period shall not be considered by the purchaser.6.3. No interest will be payable by the purchaser on the Earnest Money/Bid Guarantee.6.4. The Earnest Money/Bid Guarantee deposited is liable to be forfeited if the tenderer withdraws or amends, impairs or derogates from the tender in any respect within the period of validity of his offer.6.5 The Earnest Money of the successful tenderer will be returned after the Contract Performance Guarantee as required (Clause-20 of the General Conditions of Contract) is furnished and formal contract duly signed is received by the purchaser.6.6. It the successful tenderer fails to furnish a Contract Performance Guarantee as required in

Clause-20 of the General Conditions of Contract and fails to return the formal contract duly signed within fifteen days of the receipt of the formal contract, then the earnest money shall be liable to be foreited by the purchaser.6.7. The earnest Money of all unsuccessful tenderers will be returned by the Purchaser.6.8. Any tender not accompanied by Earnest Money in one of the approved froms given in clause6.1 above will be rejected by the purchaser as non responsive.

7. SUBMISSION OF OFFERS7.1. All offers shall be either type-written or written in indelible ink.7.2. Any individual (s) signing the tender or other documents connected therewith should specify whether he is signing.

(i) as sole proprietor of the concern or as attorney of the sole proprietor;(ii) as a partner or partners of the firm;

(iii) as Director, Manager or Secretary in the case of a Limited Company duly authorised by a resolution passed by the Board of Directors or in pursuance of the authority conferred by Memorandum of Association.

7.3. In the case of a firm not registered under the Indian Partnership Act, all the partners or the attorney duly authorised by all of them should sign the tender and all other connected document's. The original power of attorney or other documents empowering the Individual or individuals to sign, should be furnished to the purchaser for verification if required.7.4. All prices and other information like documents etc. having a bearing or the price shall be written both in figures and words in the prescribed Offer form.7.5. Offer in the prescribed form (Annexure-1 or 2 as applicable) should be addressed to the Controller of Stores. Diesel Locomotive Works, Varanasi (U.P.) INDIA, and submitted in the manner specified in the Bid Invitation contained in Bid Documents part. 1.7.6. Offers shall be as per the General and Special Conditions of Contract given in the Bid Documents. However, the tenderer shall indicate his acceptance or otherwise against each clause and sub-clause of the General and Special Conditions of Contract. For this purpose, the tenderer shall enclose a separate statement (Annexure-11) indicating only the deviations from any clause or sub-clause of the General and Special Conditions of Contract, which he proposes with full justification for such deviations. The purchaser, however, reserves the right to accept or reject these deviations and his decision thereon shall be final.7.7. Offers are required from the actual manufacturers of the stores. Offers from other agents, brokers and middlemen) will not be accepted.7.8. Each page of the offer must be numbered consecutively, should bear the tender number and should be signed at the tenderer at the bottom. A reference of the total number of pages comprising the offer must be made at the top right hand corner of the first page.7.9. The tenderer should avoid ambiguity in his offer e.g. if his offer is to his standard sizes/lengths/dimensions, he should specifically state them in details without any ambiguity Brief descriptions such as "standard lengths" etc. should be avoided in the offer.

8. LOCAL CONDITIONS8.1. It will be imperative on each tenderer to fully acquaint himself of all the local conditions and factors which would have any effect on the performance of the contract and cost of the

stores. In his own interest, the foreign tenderer should familiarise himself with the Income Tax act. 1961, the Companies Act. 1965, the Customs Act. 1962 and related Laws in force in India. The purchaser shall not entertain any request for clarifications from the tenderer regarding such local conditions. No request for the change of price, or time schedule of delivery of stores shall be entertained after the offer is accepted by the purchaser.9.

DELETED

10. PRICE BASIS AND INDEMNITY10.1. Foreign tenderer shall quote his prices on the basis of (i) FOB nearest port of shipment having facilities to handle the same, (ii) C & F Indian Port and (iii) CIF Indian Port.10.2. Under the CIF price, the FOB price, the ocean freight charges and marine insurance charges shall be indicated separately.10.3. The terms FOB and C & F shall be as defined in the current edition of International Rules for the interpretation of the Trade Terms published by the International Chamber of Commerce, Paris and commonly referred as INCOTERMS. The term CIF shall also be as defined in said INCOTERM; with the ex ception that in this case the marine insurance from any source eligible under the Bank Guidelines shall also be arranged by the supplier.10.4. These prices should not include agency commission payable to Indian Agents which shall be exhibited as already indicated in clause- 3.4. The Indian Agent's commission shall be shown in foreign currency as a definite amount and not as a percentage.10.5. The prices should be stated only in one currency and should be either in the currency of the manufacturer's country or in U.S. Dollars. However, if the goods offered are manufactured in more than one country, the tenderer may state portions of the bid price in the respective currency of the country of origin in which he wishes to be paid. The bid price shall be the total of such portions. Alternatively, tenderer may, at his option, state the entire bid price in U.S. Dollars The portion of the bid price relating to components of Indian origin to be incorporated in the stores and/or supply of Stores shall be stated in Indian Rupees.10.6 The CIF prices shall be based on Ocean transportation and marine insurance from any source eligible under the Bank Guidelines. In case the contract is signed on CIF basis, the supplier shall be free to ship the goods by Vessels registered in any eligible source under World Bank Guidelines or through a shipping conference in which such eligible sources hold a major share. The Purchaser shall also have the right to sign the contract of C & F basis, in which case he will be responsible for marine insurance and on F.O.B. basis, in which case he will be responsible for making arrangements for shipping and marine insurance. "Annexure-8 wil not apply to contract signed on C.I.F. basis".

10.7. The prices quoted shall be firm and not subject to any variation. In case of CIF delivery, ocean freight charges and marine insurance included must also be firm and no variation will be allowed on this account after the opening of tenders.10.8. The tenderers should quote their lowest possible price. Quotations should be made only for units specified in the "Schedule of Requirements"10.9. Tenderers submitting indigenous offers shall indicate the FOR (Free On Rail) Price delivery at destination station, which shall include all State and Central taxes and Excise Duties leviable on the final finished supplies tendered for. In addition, a complete break-up showing the ex-factory price, taxes and excise duties individually, incidentals and handling charges, freight and insurance charges, if any shall also be given.

11. INSURANCE11.1. In the case of FOB offer insurance shall be arranged by the Purchaser. However, in the case of CIF offer, marine insurance covering transit risk upto ultimate destination in India (Ultimate consignee) will be arranged and paid for by the supplier.11.2. In the case of indigenous offers, the purchaser will not pay separately for transit insurance and the supplier will be responsible till the entire stores contracted for, arrive in good condition at destination, Where the tenderer intends to insure the goods, the insurance charges should be clearly indicated, separately in the break-up. The consignee, will advise the tenderer within 45 (forty five) days of the arrival of goods at the destination, any loss/damage etc. of the goods and it shall be the responsibility of the tenderer to lodge the necessary claim on the carrier and/or insurer and pursue the same. The tenderer shall, however, at his own cost replace/rectify immediately, to the entire satisfaction of the consignee, the goods lost/damaged, without waiting for the settlement of the claim.

12. EVALUATION OF THE OFFERS12.1. For purpose of the evaluation and comparison of offers, all prices shall be converted to indian Rupees at the exchange rate for each of the currencies in which such prices are expressed, on the date of opening of tenders. 12.2. The tenders received will be evaluated by the purchaser to ascertain the best and lowest acceptable tender in the interest of the purchaser, as specified in the specifications and tender documents.12.3. Evaluation criteria not mentioned herein but mentioned specifically in the technical specifications will be taken into consideration in the evaluation of offers.12.4. The comparison of tenders shall be based on :-

(a) Quoted FOB Price plus Ocean Freight estimated by the Ministry of Shipping andTransport of India.

Or

(b) Quoted C & F Price.(c) The purchaser reserves the right to adopt either of the above two basis.(d) Landed price of import offer vis-a vis all advance price of indigenous offers.(e)

DELETED

(f)

DELETED

(g) Discounts with conditions attached such as discounts having linkages to quantity, early payment, early Receipt Notes etc. will not be considered for evaluation purpose. Thus discounted rates, linked to quantities and prompt payment etc., will be ignored for determining inter-se price ranking position. If in firms quote different rates for different quantity slabs, the highest of the rates so quoted will only be taken for determining the inter-se price ranking position.Though the rates without considering discounts with conditions attached and highest of the rates of different quantity slabs shall only be considered for evaluation purpose, Railways may avail the discounted/lowest of the slab rates, if otherwise firm's offer is found to be acceptable.

(h) The purchaser reserves the right to split the tender quantity among two or more tenders at its descretion for reasons like vital/critical nature of items, quantity to be procured, past performance and capacity of the bidders, delivery required etc. While splitting the tender quantity, the purchaser also reserves the right to give counter offer at a single rate considered appropriate. This, however, does not in any way preclude the purchaser from placing orders at differential rates.

12.5. Even though the purchaser reserves the right to obtain the materials at three Ports viz.Kolkata, Mumbai and Chennai Port: evaluation of tenders will be done on CIF Kolkata basis, tenderers are, therefore requested to quote on CIF Kolkata basis.

13. PAYMENT TERMS.

13.1. Foreign Supplies : The Standard payment terms subject to recoveries, if any under theLiquidated Damages Clause in General Conditions of Contract will be as under:

(a) 90% payment on proof of inspection and shipment with in 30days of receipt of shipping documents as specified. In case of C & F contract this payment will be subject to furnishing of a Bank Gurantee in a form to be approved by the purchaser for the amount to safeguard the purchaser against any loss. The guarantee will be operative from the date of shipment of the date of delivery of port in India.

(b) Balance 10% payment within 90 days of receipt of goods at an indian Port of discharge on furnishing a Bank Guarantee as per Annexure-13 fully indemnifying the purchaser against all losses incurred by the purchaser during the guarantee period stipulated in the Warranty Clause, Where, however, the installation and commissioning of the machine is to be done under the supervision of the technical expert of the contractor, the balance 10% payment will be made on furnishing of the Bank Guarantee mentioned above, within 30 days of the successful completion of proving test in which the equipment performance would have been demonstrated by the supplier or his agent after its commissioning at the consignee's premises. Where, however, the installation and commissioning of the equipment is delayed or put off beyond 90 days of the receipt of goods at the ultimate destination due to express written instructions of the purchaser/consignee the balance 10% payment shall be released to the supplier on his furnishing the necessary Bank Guarantee.

13.2. Indigenous supplies. The standard payment terms subject to recoveries, if any, under the Liquidated Damages clause in the General Conditions of Contract will be as under:-

(a) 90% payment on proof of inspection and despatch of documents as specified,within30 days of receipt of specified documents.

(b) Balance 10% payment within 90 days of receipt of supplies at destination station,on furnishing a Bank Guarantee as per ANNEXURE-13fully indemnifying the purchaser against all losses incurred by the purchaser during the guarantee period stipulated in the Warranty Clause. Where, however, the installation and commissioning of the equipment is to be done under the supervision of the technical expert of the contractor, the balance 10% payment will be made on furnishing of the Bank Guarantee mentioned above within 30 days of the successful completion of proving test in which the equipment performance would have been demonstrated by the supplier or his agent after its commissioning at the consignee's premises. Where, however, the installation and commissioning of the equipment is delayed or put off beyond 90 days of the receipt of goods at the ultimate destination due to express written instructions of the Purchaser/consignee the balance 10% payment shall be released to the supplier on his furnishing the necessary Bank Guarantee.

13.3. If a tenderer requests for a variation in the payment terms and if such variation is acceptable to the purchaser, the same would be evaluated at an interest of 12% per annum for all earlier payments for the purpose of comparison with other tenders.14. DEDUCTIONS

14.1. Payment as in clause-13.1 and 13.2 above shall be subject to deductions of any amount for which the Contractor is liable under the contract against this tender or any other contract in respect of which the President of India is the purchaser.15. PAYMENT PROCEDURE

15.1. The contract price will be normally paid in the currency or currencies in which the price is stated in the successfull tender.15.2. Payment for contracts against indigenous tenders will be made in Indian Rupees against bills preferred by the contractor. Any payment in the foreign exchange that the contractor may have to pay for imported components forming part of the tender will be arranged by him directly.15.3. All banking charges in India and the Country of the vendor will be borne by the purchaser. However, the following will be exception to this rule :-

(a) If the Vendor choses his own L.C./DOCUMENT Advising/negotiating Bank and confirming Bank, then foreign banking charges will be borne by the Vendor.

(b) All expenses on account of amendments to L.C./document on behest/request of theVendor will be borne by the Vendor.

(c) The vendor will not chose the Applicant bank (i.e. L.C. opening bank) in India. The Applicant bank (i.e. L.C. opening bank) In India. This will be the responsibility of D.L.W. in accordance with D.L.W's banking and administrative procedures. If they do so they will have to bear Indian Bank Charges also.

16.2. SHIPPING ARRANGEMENTS

16.1. No shipment will be arranged by vessels belonging to non-member countries of the World Bank in cases where the contract is financed from IDA unless such vessels are engaged as a part of a shipping conference subject to pooling of revenues. (Para 12 (i) and 12 (ii) of Annexure-5).16.2. In the event of an order being placed on C & F basis, the contractor shall arrange shipment in accordance with the requirements of the Ministry of Transport (Department of Surface Transport) New Delhi, INDIA indicated in Annexure-8, (as applicable). The purchaser will, however, in accordance with the option clause, have the right to change over the contract to FOB basis, if considered necessary after giving one month's notice to the contracting firm. Shipping arrangements in the case of FOB contract shall be made by the Shipping Co-ordination and Chartering Division/Shipping Co-ordination offices, Ministry of Transport, (Department of Surface Transport), New Delhi, INDIA, in accordance with details given in Annexure-9. Particulars of cargoes for which shipping space will be required in the execution of contract should be furnished in detail (as per Annexure-10) to the Chief Controller of Chartering. Shipping Co-ordination Officer, Ministry of Transport (Department of Surface Transport), Govt. of 'India, New Delhi, INDIA as soon as possible after the relevant contract is finalised.17. PACKING

14.1. The items tendered will have undergo arduous transportation before reaching the destination and will have to be stored and handled in tropical climate conditions (including monsoons) before they are put to the actual use. it is therefore, imperative that packing for every items is decided by taking into consideration, inter - alia, the above vital factors, so as to eliminate damage/deterioration of items in transit/transhipment/handling or during storage.17.2. The specifiction of the packing proposed shall be indicated.17.3. The packing advices should bring out the weight, dimensions and size of each bundle/package. Where it is not possible to give weight of the bundles/packages, the

contractor must indicate the volume to the bundles/packages, the number pieces per bundle/package, number of bundles/packages, and total weight of the items supplied.17.4. Where the materials are shipped in bundles/packages the pieces in each bundles/package should be of uniform sizes to facilitate quick acceptance and payment.The number of pieces in each bundle/package should also be the same.18. IMPORT LICENCE (In case of indigenous tenderers)

18.1. The successful tenderers will have to apply to the proper Government Authority for grant of requisite import licence/foreign exchange for such items as require import, within 14 days of the advance letter of acceptance/telegraphic acceptance and the purchaser will only render such assistance, as considered necessary.19. ACCEPTANCE OF TENDER

19.1 The Purchaser may accept a tender for a part or whole of the quantity offered reject any tender without assigning any reason and may not accept the lowest or any tender.19.2. Acceptance of tender will be communicated by Cable, Telex. Telegram. Express Letter or formal acceptance of tender direct to the tenderer or through his authorised agent in case where acceptance is indicated by Cable Telex, Telegram or Express Letter, the form of Acceptance of tender will be forwarded to the contractor as soon as possible but the Cable Telex, Telegram of Express Letter should be deemed to conclude the contract.20. EFFECT AND VALIDITY OF OFFER

20.1. The submission of any offer connected with these specifications and documents shall constitute an agreement that the tenderer shall have no cause of action or claim against the purchaser for rejection of his offer. The purchaser shall always be at Liberty to reject or accept any offer or offers at his sole discretion and any such action will not be called into question and the tenderer shall have no claim in that regard against the purchaser.20.2. The offer shall be kept valid for a minimum period of (150) one hundred and fifty calendar days from the date of opening of tenders.20.3. Offers shall be deemed to be under consideration immediately after they are opened and until such time the official intimation of award is made by the purchaser to the tenderer. While the offers are under consideration, tenderers and/or their representatives or other interested parties are advised to refain from contacting the purchaser by any means. If necessary, the purchaser will obtain clarifications on the offers by requesting for such information from any or all the tenderers, either in writing or through personal contact, as may be considered necessary Tenderers will not be permitted to change the substance of their offers after the offers have been opened.21. SPARE PARTS

21.1. Where required, the tenderer should quote, apart from main equipment, separately for the mandatory spares as well as for recommended spares required for two years of operation. The rates for such of the items of those spares should be indicated both in FOB and C & F basis in the case of the imported offers and FOR destination in the case of indigenous offers with complete break-up as indicated in the offer form. The purchaser reserves the right to order any or all the spares as quoted for any quantity considered reasonable by him at the prices quoted by the tenderer and on the terms and conditions quoted for the main equipment. The responsibility of the tenderer under the Warranty Clause will not be diluted in any way on this account.

22. INCOME TAX CLEARANCE CERTIFICATE

22.1. All tenderers offering indigenous stores must submit current Income Tax Clearance Certificate in original or a photostat copy thereof, along with their offers, failing which their offers are liable to be rejected.23. GENERAL

23.1. The tenderers must ensure that the conditions laid down for submission of offers detailed in the preceding paras are completely and correctly fulfilled. Tenders which are not complete in all respects as stipulated above, may be summarily rejected.24. LAST DATE OF RECEIPT OF THE TENDERS

24.1. The offers complete in all respects should reach the Controller of Stores, Diesel Locomotive Works, Varanasi (U.P.) INDIA not later than 15.00 hrs. on the date specified in the "Schedule of Requirements".24.2. The tenders received shall be opened in the presence of such other tenderers or their representatives, who may like to be present at 15.30 hrs. on the date specified in the "Schedule of Requirements" and where practicable, the names of tenderers and the rates tendered by them will be read out.

Fax : 0542-270603 Controller of Stores. Telex : 0542-230 DLW-IN Diesel Locomotives Works, Cable/Grams : DIESELOCO Varanasi (U.P.) INDIA

SECTION-IIGENERAL CONDITIONS OF CONTRACT

TABLE OF CONTENTS

Clause Page No.

1. Definitions 12. Execution 13. Responsibility of the Contractor for executing contract 14. Consignee's Right of Rejection 1-25. Indemnity 26. Prices 27. Transfer & sub-letting 28. Drawings 29. Alterations 2

10. Progress Report 311. Delivery F.O.B. - Invoices and Freight 312. Customs drawback 313. Marking 3-414. Packing 415. Supply of drawings. tracings and specifications 416. Corrupt gifts and payment of commission 417. Delivery period 418. Liquidated damages 4-519. Default and Risk Purchase 520. Force Majeure 521. Performance Guarantee Bond 5-622. Inspection 6-723. Inspecting Officer-Power of Rejection 724. Consequence of Rejection 7-825. Acceptance of stores despatched after the expiry of delivery period 8-926. Export Licence 927. Arbitration 9-1028. Laws governing the contract 1029. Headings 1130. General 1131. Secrecy 1132. Quantity Variation 11-1233. Work Test Certificate 12

GENERAL CONDITIONS OF CONTRACT

1. DEFINITIONS1.1. Throught out these conditions and in the specifications, the terms :-

(1) "Contract" means the person, firm or company with whom the order for the supply is placed and shall be deemed to include the contractor's successors (approved by the purchaser), heirs, executors, and administrators, as the case may be, unless excluded by the terms of the contract.

2. EXECUTIONS2.1. The whole contract is to be executed in the most approved, substantial and workmanlike manner, to the entire satisfaction of the purchaser or his nominee, who, both personally and by his deputies, shall have full power, at every stage of progress, to inspect the stores at such times as he may deem fit and to reject any of the stores, which he may disapprove, and his decision thereon, and on any question of the true intent the meaning of the specifications shall be final and conclusive.

3. RESPONSIBILITY OF THE CONTRACTOR FOR EXECUTING CONTRACT3.1. Risk in the Stores : The contractor shall perform the contract in all respects in accordance with the terms and conditions thereof. The Stores and every constituents part thereof, whether in the possession or control of the contractor, his servants or a carrier, or in the joint possession of the contractor, his servants and the purchaser, his servants, shall remain in every respect at the risk of the contractor until their actual delivery to the consignee at the stipulated place or destination or where so provided in the acceptance of tender, until their delivery to a person specified in the "Schedule of Requirements", as interim consignee for the purpose of despatch to the consignee. The contractor shall be responsible for all loss, destruction, damage or deterioration of or to the stores from any cause what-so-ever while the stores after approval by the inspector are awaiting despatch or delivery or are in the course of transit from the contractor to the consignee, or the interim consignee as the case may be. The contractor alone shall be entitled and responsible to make claim against Railway Administration or any other carrier in respect of non-delivery, short delivery, misdelivery, loss, destruction damage or deterioration of the goods entrusted to such carrier by the contractor for transmission to the consignee or the interim consignee as the case may be.

4. CONSIGNEE'S RIGHT OF REJECTION(i) Notwithstanding any approval which the inspector may have given in respect of the

stores or any materials or other particulars or the work or workmanship involved in the performance of the contract (whether with or without any test carried out by the contractor or the inspector or under the direction of the Inspector) and notwithstanding delivery of the stores, where so provided to the interim consignee. it shall be lawful for the consignee, on behlf of the purchaser, to reject the stores or any part, portion of consignment there or within 90 days after actual delivery thereof to him at the place or destination specified in the schedule if such stores or part/portion of consignment thereof is not in all respect in conformity with the

terms and conditions of the contract whether on account of any loss, deterioration or damage before despatch or delivery or during transit or otherwise how-so-ever.

(ii) Provided that where, under the terms of the contract the stores are required to be delivered to an interim consignee for the purpose of despatch to the consignee, the stores shall be at the purchaser's risk after their delivery to the interim consignee but nevertheless it shall be lawful for the consignee on behalf of the purchaser to reject the stores of any part/portion of consignment thereof upon their actual delivery to him at the destination, if they are not in all respect in conformity with the terms and conditions of contract, except where they are not in all or have been deteriorated in the course of transit otherwise after their delivery to the interim consignee.

(iii) The provisions contained in the clause-24 of this section relating to the removal of stores rejected by the inspector shall, mutatis mutandis, apply to stores rejected by the consignee as herein provided.

5. INDEMNITY5.1. The contractor shall at all times indemnify the purchaser against all claims which may be made in respect of the said work for infringement of any right protected by patent registration design or trade mark; provided always that in the event of any claim in respect of an alleged breach of a patent registered or trade mark being made against the purchaser he shall notify the contractor of the same and the contractor shall be at liberty, but at his own expense, to conduct negotiations for settlement of any litigation that may arise therefrom.

6. Prices6.1. The Prices stated are to include all costs of stamping, painting, marking, protection or preservation of the stores any claim what-so-ever that may arise from the manufacture, packing, shipment, marking, or delivery of Dock and Harbour dues, port's rates, export taxes and other fees or charges, if any levied because of exportation. The prices stated are also to include all rights (if any) of patent, registered design or trade mark and the contractor shall indemnify the purchaser against all claims in respect of the same.

7. TRANSFER AND SUBLETTING7.1. The contractor shall not sublet (otherwise than that which may be customary in the trade concerned), transfer assign or otherwise part with directly or indirectly to any person or persons, Whatever is in this contract, or any part thereof without the previous written permission of the purchaser or his nominee.

8. DRAWINGS8.1. If any figuring upon a drawing differ from those obtained by scaling the drawings, the figured dimensions shall be taken as correct.

9. ALTERATIONS9.1. The purchaser or his nominee may require such alteration to be made on the work during its progress as he deems necessary. Should these alterations be such that either party to the contract considers an alteration in price justified, such alteration shall not be carried out untill amended price have been submitted by the contractor and accepted by the purchaser Should the contractor proceed to manufacture such stores without obtaining the consent in

writing of the purchaser to an amended price, he shall be deemed to have agreed to supply the stores at price as may be considered reasonable by the purchaser.

10. PROGRESS REPORT10.1. The contractor shall render such reports as to the progress of the contract and in such form as may be called by the purchaser or his nominee. The submission and acceptance of those reports shall not prejudice the right of the purchaser in any manner.

11. DELIVERY F.O.B. INVOICES AND FREIGHT11.1. The stores shall be delivered by the contractor free on board such vessels in such port or ports named in the quotation, as the purchaser or his nominee may require.11.2 Such number of inspection certificates, advice notices, packing accounts and invoices, as may be required by the purchaser or his nominee, shall be furnished by the contractor at his own cost.11.3 Freight for the conveyance of the stores or any part thereof will be engaged by the purchaser or his nominee, who will give due notice to the contractor when and no board what vessels they or such part thereof are to be delivered. Should the stores or any part thereof be not delivered within 7 days of the receipt of such notice by the contractor, the contractor will be liable for all payments and expenses that the purchaser incur or be put to, by reason of such non-delivery including dead and extra freight demurrage of vessels and any other charges incurred by the purchaser whatsoever.11.4 Delivery CIF-The stores shall be delivered free of expense to the purchaser on board the vessels with ocean transportation to named Indian Port, including any charges for unloading at the said Port as also marine Insurance covering transit risk upto the ultimate destination (i.e. Insatllation site) being paid by the supplier. The supplier shall be free to ship the goods by vessels registered in any eligible source under World Bank Guideline or through a shipping conference in which such eligible sources hold a major share.

12. CUSTOMS DRAWBACK12.1. If, by reason of a customs notification published after the placing of the contract, the stores to be supplied shall become, on exportation, subject to customs drawback in respect of duty paid on them or on the materials used in their manufacture the contractor shall recover the amount of the drawback and the contract price of the stores shall be reduced by the amount so recovered.

13. MARKING13.1. The marking of all goods supplied shall comply with the requirements of the Indian Acts relating to merchandise marks or any amendment thereof and of the rules made thereunder. The following marking of the materials is required :

(a) The following particulars should be stenciled with indelible paint on all the materials/packages supplied loose :(i) Contract number (ii) Specification No. (iii) Item No.(iv) Port consignee(v) Abbreviated consignee marks

(b) The marking as in (a) above should be on lables securely clamped to the packages or bundles so as not the break loose during transit. The use of steel tags for this purpose should be avoided.

(c) In addition to the markings as specified above, distinguishing colour marks should be given so as to distinguish the ultimate consignee in India.

14. PACKING14.1. The contractor will be held responsible for the stores being sufficiently and properly packed so as to ensure their being free from any loss or injury on arrival at their destination.14.2. Where materials are to be supplied in bundles, the gross weight should not exceed 1.9 metric Tonne per bundle for shipments to Indian Ports.

15. SUPPLY OF DRAWINGS, TRACINGS AND SPECIFICATIONS15.1. Any drawings, tracings or descriptions specified shall, unless otherwise directed, be furnished by the contractor with the first consignment of the work to which they relate and no payment whatsoever will be made until such drawings, tracings or descriptions have been furnished to the satisfaction of the purchaser.

16. CORRUPT GIFTS AND PAYMENTS OF COMMISSION16.1. Any bribe commission, gift or advantage, given promised or offered by or on behalf of the contractor, his agents or servants or any one on his/their behalf to any employee representative or agent of the purchaser or any person on his behalf in relation to the execution of this or any other contract with the purchaser shall in addition to the criminal liability under the laws in force, subject the contractor to cancellation of this and all other contracts with the purchaser, and also to payment of any loss resulting from any such cancellation to the like extent as is provided in case of cancellation under clause "DEFAULT" given below and the purchaser shall be entitled to deduct the amounts so payable from any money otherwise due to the contractor under this or any other contractor. Any question or dispute as to the commission of any offence under the present clause shall be settled by the purchaser in such manner and no such evidence or information as may be throught fit and sufficient and his decision shall be final and conclusive on the matter.

17. DELIVERY PERIOD17.1. The earliest possible delivery is required in India. The purchaser attaches the utmost importance to timely deliveries and requests the manufacturers to take note of the liquidated damages and risk purchase conditions as are applicable in case of delays in supplies.

18. LIQUIDATED DAMAGES18.1. In the event of the contractor's failure to have stores ready for delivery by the time or times respectively specified in the letter of acceptance or contract, the purchaser may withhold any payment until the whole of the stores have been fully supplied or delivered and may deduct or recover from the contractor as liquidated damages (and not by way of penalty), a sum at the rate of 2 percent (two percent) or the price of any stores which the contractor has failed to deliver as aforesaid for each and every month (part of a month being treated as a full month) during which the stores may not be ready for delivery subject to maximum of 10% of value of Contract. Provided, however that if the delay shall have arisen from any cause which the purchaser may admit as reasonable ground for further time, the purchaser may in his discretion allow such additional time as he may consider to have

required by the circumstances of the case and shall forego the whole or such part, as he consider reasonable of his claim for such loss or damage as aforesaid.

19. DEFAULT AND RISK PURCHASE19.1. Should the contractor fail to have the stores ready for delivery by the time or times agreed upon as aforesaid, or should the contractor in any manner otherwise fail to perform the contract or should it have a receiving order made against it, or make or enter into any arrangements or compostion with its creditor, or suspend payment (or being a company should enter into liquidation either compulsory or voluntary) the purchaser shall have power to declare the contract at an end at the risk and cost of the contractor as provided in every way. In such a case, the contractor shall be liable for any liquidated damages for delay as provided above and for any expenses, losses or damages which the purchaser may be put to incur or sustain by reason of or in connection with the contractor's default.19.2. In the event of risk purchase being made against the contract the contractor will be liable to pay to the purchaser extra expenditure incurred i.e. in procuring the same or similar stores and/or equipment the difference between the rate quoted by the lowest acceptable tenderer against the tender and that at which the risk purchase contract is concluded, provided it is done within nine (9) months from the date of breach of the contract.19.3 The cancellation of the contract may be either whole or part of the contract or purchaser's option. In the event of the purchaser terminating this contract in whole or in part, he may procure upon such terms and in such manner as he deems appropriate, supplies or services similar to those so terminated, if risk purchase is not rendered possible for any reason in which event the contract all be liable to the purchaser for any excess costs for such similar supplies/or services; provided that the contractor shall continue the performance of this contract to the extent not terminated under the provisions of this clause.

20. FORCE MAJEURE20.1. In event of any unforeseen event directly interferring with the supply of stores arising during the currency of the contract, such as insurrection, restraint imposed by the Govt., act of legislative or other authority; war, hostilities, acts of the public enemy, civil commotion. sabotage, fires, floods, explosions, epidemics, quarantine restrictions, strikes, lockouts or acts of God the contractor shall within two weeks from the commencement thereof, notify the same in writing to the purchaser with reasonable evidence there of. If the force majeure condition (s) mentioned above be in force for a period of 180 days or more at any times the purchaser shall have the option to terminate the contract on expiry of 90 days of commencement of such force majeure by giving 14 days notice to the contractor in writing. In case of such termination no damages shall be claimed by either party against the other save and except those which had occured under any other clause of this contract prior to such termination.

21. PERFORMANCE GUARANTEE BOND21.1. After a letter of acceptance is issued by the purchaser, the contractor shall furnish a performance guarantee bond in the proforma attached (Annexure-12) from a Nationalized Bank or Schedule commerical foreign bank branches operating in India Governed by Reserve Bank of India guidelines or foreign bank duly countersigned by a Nationalized Indian Bank within 15 days from the receipt of the letter of acceptance of the tender by the contractor or the execution of the contract. whichever is earlier, for an amount of equivalent to 10% of the value of the contract in the same currency of the contract price. The expenses to be incurred

for the counter signature of a nationalized bank shall be borned by the contractor. On the performance and completion of the contract in all the aspects the Per formance Guarantee Bond will be returned to the contractor without any interest in case furnishing of an acceptable per formance Guarantee Bond is delayed by the contractor beyond the period provided above and bond is accepted by the Purchaser, Liquidated damages, as provided in clause-18 for a period of delay in submission of the bond, may be levied. Alternatively, the purchaser may declare the contract as at an end and enforce clasuse 19.21.2. The Performance Guarantee Bond shall remain in full force and effect during the period that would be taken for satisfactory performance and fulfilment in all respects on the contract i.e. till satisfactory commissioning of the machine (s) at consignee's works, and shall in the first instance be valid upto twelve (12) months after the date of last shipment/delivery of the goods contracted to be purchased provided that before the expiry of the date of validity of the Performance Guarantee Bond, the Contractor on being called upon by the Purchaser from time to time shall obtain from the Guarantor Bank, extension of time for validity thereof for a period of six months, on each occasion, The extension or extensions aforesaid executed on non-judicial stamp paper of appropriate value must reach the Purchaser atleast thirty days before the date of expiry of the Performance Guarantee Bond on each occasion.21.3. As and when an amendment is issued to the contract the contractor shall within fifteen days of the receipt of such an amendment furnish to the purchaser an amendment to the performance Guarantee Bond rendering the same valid for the contract as amended.21.4. The Performance Guarantee Bond and/or any amendment thereto shall be executed on a stamped paper of requisite money value in accordance with the laws of the country in which the same is/are executed by the party competent to do so. The Performance Guarantee Bonds executed in India shall also be got endorsed by the Collector under Section 32 of the Indian Stamp Act. 1899 for adequency of the Stamp Duty, by the contractor.

22. INSPECTION22.1. Inspection will be carried out by the purchaser or his nominee. The cost of inspection will be on purchaser's account subject to other provisions hereing contained. Atleast four weeks notice must be given to the inspecting authority to enable him to arrange the necessary inspection.22.2. Facillities for Test and Examination

(i) The contractor shall provide, without extra charge all materials, equipments, tools, labour and assistance of every kind which the purchaser or his nominee may consider necessary for and tests and examinations which he or his nominee shall require to be made on the contractor's premises and shall pay all costs attendant thereon.

(ii) The contractor shall also provide and deliver free of charge, at such places as the purchaser or his nominee may nominate such materials as he or his nominee may require for test by chemical analysis or independent testing machines. The cost of any such test will be defrayed by the purchaser unless it is stated in the specification that it is to be paid by the contractor.

22.3. Notification of Result of Inspection

Unless otherwise provided in the specifications or "Schedule of Requirement" the examination of stores will be made as soon as practicable after the same have been submitted for inspection, and the result of the examination will be notified to the contractor.

22.4. Inspection Notes

On the stores being found acceptable by the Inspecting Officer, he shall furnish the contractor with necessary copies of the Inspection Notes duly completed, for being attached to the contractor's bill in support thereof.22.5. Certification of Inspection and Approval

(i) No stores will be considered ready for delivery until the Purchaser or the Inspecting Officer nominated by him shall have certified in writing that they have been inspected and approved by him.

(ii) It shall be the responsibility of the contractor to ensure that only such goods as have been duly inspected and approved by the Inspecting Authority, are offered for arranging shipment to the Government of India Forwarding Agents and to furnish to them a certificate as under :

"Certified that the goods offered for arranging shipment have been duly inspected and approved by the prescribed authority in accordance with the terms of the contract and a copy of the Inspection Certificate issued in this regard is enclosed".

23. INSPECTING OFFICER-POWERS OF REJECTION23.1. The Inspecting Officer shall have the power-

(i) Before any stores or Part thereof are submitted for inspection, to certify that they cannot be in accordance with the contract owing to the adoption of any unsatisfactory method of manufacture.

(ii) To reject any stores submitted as not being in accordance with the particulars.

(iii) To reject the whole of the instalment tendered for inspection, if after inspection of such portion thereof, as he may in his discretion think fit. he is satisfied that the same is unsatisfactory.

(iv) To mark the rejected stores with a rejection mark. so that they may be easily identified if re-submitted.

23.2. The Inspecting Officer's decision as regards the rejection shall be final and binding on the contractor.

24. CONSEQUENCE OF REJECTION24.1. If on the stores being rejected by the Inspecting Officer of consignee at the destination, the contractor fails to make satisfactory supplies within the stipulated period of delivery, the purchaser shall be at liberty to-

(i) Request the contractor to replace the rejected stores forthwith but in any event not later than a period of 21 days from the date of rejection, and the contractor shall bear all the cost of such replacement, including freight, if any, on such replacing and replaced stores but without being entitled to any extra payment on that or on any other account.

(ii) Purchase or authorise the purchase of quantity of the stores rejected or others of a similar description (when stores exactly complying with the particulars are not, in the opinion of the purchaser, which shall be final; readily available) without notice

to the contractor, at his risk and cost and without affecting the contractor's liability as regards to the supply of any further instalment due under the contract, or

(iii) Cancel the contract and purchase or authorise the purchase of the stores or others of a similar description (when stores exactly complying with the particulars are not in the opinion of the purchaser, which shall be final readily available) at the risk and cost of the contractor. In the event of action being taken under sub-clause (ii) above or this sub-clause, the provisions of clause-18 and 19 of the General Conditions of Contract, shall apply as far as applicable.

24.2. Where, under a contract, the price payable is fixed on F.O.B. port on export or F.O.R. despatching station the contractor shall, if the stores are rejected at the destination by the consignee, be liable in addition to his other liabilities including refund of price recoverable in respect of the stores so rejected, to reimburse to the purchaser, the freight and all other expenses incurred by the purchaser in this respect.

24.3. Rejected Stores

On rejection of any stores submitted for inspection at a place other than the premises of the contractor, such stores shall be removed by the contractor at his own cost, subject as hereinafter stipulated, within 14 days of the date in intimation of such, rejection. If the concerned communication is addressed and posted to the contractor at the address mentioned in the schedule, it will be deemed to have been served on him at the time when such communication would in course of ordinary post reach the contractor. Provided that the inspector may call upon the contractor to remove dangerous, infected or Perishable stores within 48 hours of the receipt of such communication and the decision of the inspector in this behalf shall be final in all respects. Provided further that where the price or part thereof has been paid, the consignee is entitled without prejudice to his other rights to retain the rejected stores till the price paid for such stores is refunded by the contractor and that such retention shall not in any circumstances be deemed to be the acceptance of the stores or waiver of rejection thereof.

24.4. All rejected stores shall in any event and circumstances remain and always be at the risk of the contractor, immediately on such rejection. If such stores are not removed by the contractor within the period aforementioned, the inspector may remove the rejected stores and either return the same to the contractor at his risk and cost by such mode of transport as the purchaser of the Inspector may decide, or dispose off such stores at the contractor's risk and on his account and retain such portion of the proceeds, if any, from such disposal, as may be necessary to recover any expense incurred in connection with such disposal (or any price refundable as a consequence of such rejection) The Purchaser shall in addition, be entitled to recover from the contractor, the handling and storage charges for the period during which the rejected store are not removed/disposed off in accordance with the provision thereof.

25. ACCEPTANCE OF STORES DESPATCHED AFTER THE EXPIRY OF DELIVERY PERIOD

25.1. In cases where only a portion of the stores ordered is tendered for inspection at the fag end of the delivery period and also in cases where inspection is not completed in respect of the portion of the stores tendered for inspection during the delivery period because of the reason that adequate notice for inspection in accordance with clause-22.1 of General conditions of Contract was not given by the contractor, the purchaser reserves the right to cancel the order for the balance quantity, at the risk and expense of the contractor without

any further reference to him. If the stores tendered for inspection during or at the fag end of the delivery period are not found acceptable after carrying out the inspection, the purchaser is entitled to cancel the contract in respect of the same at the risk and expense of the contractor. If however, the stores tendered for inspection are found acceptable the purchaser may grant an extension of the delivery period subject ot the following conditions :-

(a) The purchaser has the right to recover from the contractor the liquidated damages on the stores, which the contractor has failed to deliver within the period fixed for delivery.

(b) That no increase in price on account of any statutory increase in or fresh imposition of Customs Duty, Excise Duty, Sales Tax, Freight Charges or on any account of any other tax or duty leviable in respect of the stores specified in the contract, which takes place after the date of delivery period stipulated in the said Acceptance of Tender, shall be admissible on such of the said stores as are delivered after said date.

(c) The notwithsanding any stipulation in the contract for increase in price on any other ground no such increase which takes place after the delivery date stipulated in the contract shall be admissible on such of the said stores as are delivered after the said date.

(d) But nevertheless the purchaser shall be entitled to the benefit of any decrease in price on account of reduction in or remission of Customs Duty, Excise Duty, Sales Tax or on account of any other ground which takes place after the expiry of the above mentioned date namely the delivery date stipulated in the contract. The contractor shall allow the said benefit in his bills or in the absence of thereof shall certify that no decrease in price on account of any of these factors has been taken place.

(e) That any additional expenditure incurred by the purchaser on custom duty, freight charges as also extra cost which may arise on account of variation in exchange rate during the extended delivery schedule shall be borne by contractor.

25.2. The contractor shall not despatch the stores till such time an extension in terms of "Clause 25.1 (A) and (B) above is granted by the purchaser and accepted by the contractor. If the stores are despatched by the contractor before an extension letters as aforesaid is issued by the purchaser and the same are accepted by the consignee, the acceptance of the stores shall be deemed to be subject to the conditions (a) and (b) mentioned in clause-25.1 above.

26. EXPORT LICENCE.26.1. If required, the contractor shall apply to the appropriate Government Authority of the exporting country for the grant of the requisite Export Licence within seven days of the receipt of contract.

27. ARBITRATION27.1. (a) For Indigenous Suppliers

In the event of any question, dispute or difference arising under these conditions or any special conditions of contract, or instructions to Tenderer's or in connection with this contract (except as to any matter the decision of which is specifically provided for by these conditions or instructions to Tenderers' or the special conditions) the same shall be referred to the sole

arbitration of a Gazetted Railway Officer appointed to be the Arbitrator by General Manager, Diesel Locomotive Works, Varanasi (U.P.) INDIA. The Gazetted Railway Officer to be appointed as Arbitrator, however, will not be one of those who had an opportunity to deal with the matter to which the contract relates or who in the course of their duties as railway servants had expressed views on all or any of the matters under dispute or difference. The award of the Arbitratior shall be final and binding on the parties to this contract.(b) For Foreign Suppliers

In the event of any dispute or difference arising between the parties hereto relating to any matter arising out or connected with this agreement, such dispute or difference shall be referred to the aware of two Arbitrators, one Arbitrator to be nominated by the purchaser and the other to be nominated by the contractor or in the case of the said Arbitrators not agreeing then to the award of an Umpire to be appointed by the Arbitrators in writing before proceeding with the reference, and in case the Arbitrators cannot agree to the Umpire, the Umpire may be nominated by the Chief Justice of India. The award of the Chief Justice of India shall be final and binding on the parties. Subject as aforesaid, the Indian Arbitration Act. 1996 the rules thereunder and any statutory modification or re-enactments thereof shall apply to the arbitration proceedings under this agreement. The venue of the arbitration in all cases shall be in India.27.2. In the event of the arbitrator dying neglecting or refusing to act, or resigning or being unable to act for any reason or his award being set aside by the court for any reason, it shall be lawful for the authority appointing the arbitrator to appoint another arbitrator in place of the outgoing arbitrator in the manner aforesaid.27.3. It is further a term of this contract that no person other than the person appointed by the authority as aforesaid should act as arbitrator and that if for any reason that is not possible the matter is not to be referred to arbitration at all.27.4. The arbitrator may from time to time, with the consent of all the parties to the contract enlarge the time for making the award.27.5. Upon every and any such reference the assessment of the cost incidental to the reference and award respectively shall be at the discretion of the arbitrator.27.6. Subject as aforesaid, the Arbitration Act-1996 and the rules thereunder and any statutory modification thereof, for the time being in force, shall be deemed to apply to the arbitration proceeding under this clause.27.7. Work under the contract, if reasonably possible, may continue during the arbitration proceedings and no payment due to or payable by the purchaser shall be held on account of such proceedings.27.8. The venue of arbitration shall be the place from which the acceptance note is issued or such other place as the arbitrator at his discretion may determine.27.9. In this clause the authority to appoint the arbitrator includes, if there be no such authority the officer for the time being discharging the functions of that authority, whether in addition to other functions or otherwise.

28. LAWS GOVERNING THE CONTRACT28.1. This contract shall be governed by the laws of India for the time being in force.

28.2. Irrespective of the place of delivery the place of performance place or of payment under the contract, the contract shall be deemed to have been made at the place in India from where the contract has been issued.28.3. Jurisdiction of courtsThe courts of the place from where the contract has been issued shall alone have jurisdiction to decide any dispute arising out of or in respect of the contract.

29. HEADINGS29.1. The headings of conditions hereto shall not affect the construction there of

30. GENERAL30.1. Tenderers must ensure that the condition laid down for submission of offers detailed in the preceeding paras, are completely and correctly fulfilled.30.2. Tenders which are not complete in all details as stipulated above may be summarilyrejected.

31. SECRECY31.1. The contractor shall take all reasonable steps necessary to ensure that all persons employed in any work in connection with the contract, have full knowledge of the Official Secrets Act and any regulations framed thereunder.31.2. Any information obtained in the course of the execution of the contract by the contractor his servants or agent or any person so employed as to any matter whatsoever which would or might be directly or indirectly of use to any enemy of India, must be treated as secret and shall not at any time be communicated to any person.31.3. Any breach of the aforesaid conditions shall entitle the purchaser to cancel the contract and to purchase or authorise the purchase of the stores at the risk and cost of the contractor in accordance with the clause-19 of the General Conditions of Contract. In the event of such cancellation, the stores or parts manufactured in the execution of the contract shall be taken by the purchaser at such price as he considers fair and reasonable and the decision of the purchaser to such price shall be final and binding on the contractor.

32. QUANTITY VARIATIONThe purchaser reserves the right to vary the quantity mentioned in the “Schedule of requirement” by + 30%. Purchaser also reserves the right to increase the contract quantity by a maximum of 30% after the placement of contract, during its currency, keeping the over all quantity in crease within 30% of tendered quantity and it shall be binding on the contractor to accept the increased quantity within stipulated delivery period/extended delivery period if any, irrespective of the fact whether originally contracted quantity has been shipped/despatched or not.32.1. The purchaser shall be entitled, during the currency of the contract, to increase or decrease the total quantities of each description of stores shown in the said contract by not more than 30% at the same rates, terms and conditions by giving a reasonable notice in writing of any such increase or decrease to the contractor.32.2. In case tenderer himself is not the manufacturer of the item, valid authorisation, certificate must be submitted alongwith offer otherwise offer is liable to to be rejected.32.3. Proforma quotation of principal to be attached with the offer.

32.4. Tenderer must clearly indicate make & model no. of item offered and also submit detailed specification. Leaflets/catalogues marking the offered model, specifically. Failing which the offer is likely to be ignored without any further reference to firm.32.5. The tenderer must give details of supply of the quoted item in past with full particulars. The details of machinery & plants etc. must also be furnished alongwith the offer.32.6. Firms must give specific comments/confirmation to each and every aspect to specification and clearly indicate compliance/non-compliance. In absence of which, offer will be taken as incomplete & the same may be passed over without any further reference to you.32.7. Tenderers/suppliers while quoting in the tender as well as submitting their invoice/bill they should indicate the freight charges separately from the price of the goods, failing which the supplier would be liable to pay any element of Excise duty that may become applicable on freight (Transportation) charges.32.8. Government price preference policy :“The Purchaser reserves the option to give a purchase/price preference to the offer from public Sector Units and/or from small scale/cottage Industries Units, over those from other firms. In accordance with the policies of the Government from time to time. The price preference above can not however be taken for granted and every endeavour need to be made by them to bring down cost and achieve competetiveness”.32.9. a) Tendererer has to purchase stamp-paper from the Govt. Treasury office for all

requirements in this tender i.e. EMD, PBG, WBG, Adance payment BG for issue of materials or Indemnity Bond or POA etc. as applicable.

b) A confirmatory letter has to be given by the tenderer that stamp-paper has been purchased from Government Treasury office (Name.................................................)

32.10. i) Tenderer to give consent in a mandate form for receipt of payment through ECS/EFT :- “We hereby authorise the purchaser to make payment in respect of supplies made and bills cleared through electronic transfer.”

ii) Tenderer to provide the details of Bank A/C in line with RBI guidelines for the same. These details will include Bank Name, Branch Name & Address, Account type, Bank A/C No. and Bank and Branch code as appearing on MICR cheque issued by bank.

iii) Tenderer to attach certificate from their bank Certifying the correctness of all above mentioned information (as mention in para (ii) above.)

33. WTC :The works Test Certificate, if required to be submitted as per contract should be submitted as perAnnexure-14.

SECTION-IIISPECIAL CONDITIONS OF CONTRACT

TABLE OF CONTENTS

Clause Page No.

1. Definitions 1

2. Performance of Work 1

3. Specifications 1

4. Mistakes in drawing 1

5. Variations 1-2

6. Obligation to carry out Inspector's Instructions 2

7. Responsibility of Completeness 2-3

8. Shipment of stores beyond the stipulated delivery period

for F.O.B. contract 3

9. Warranty 3-4

10. Port Consignee 4-5

11. Ultimate consignee 5

12. Vendor Assessment (for un Approved Tenderers) 5

13. Distribution of Procurable quantity 5-6

14. Ordering on Part - II approved Source 6

15. Tax paid indentification No. 7

16. Import Cases 7

17. Recovery of Liquidated Damages 7

SPECIAL CONDITIONS OF CONTRACT

The following special conditions shall apply to contracts for the supply of plant and machinery and manufactured equipment. But where they differ from the General Conditions, the Special Conditions shall over-ride the General Conditions.

1. DEFINITIONS1.1. (a) The term “Work means all the work specified or set forth and required in any by

the said specifications, drawings and “Schedule of Requirements”. hereto annexed or to be implied therefrom or incidental thereto, or to be hereafter specified or required in such explanatory instructions and drawings (being in conformity with the said original specification (s), drawing (s) and “Schedule of Requirements” and also in such additional instructions and drawing not being in conformity as aforesaid, shall from time to time, during the progress of the work hereby contracted for, as are supplied by the Purchaser).

(b) The term “Test” shall mean such test or tests as are prescribed by the specification (s) to be made by the purchaser, or his nominee, after erection at site, before the plant is taken over by the purchaser.

2. PERFORMANCE OF WORK2.1. The work shall be performed at the place or places specified in the tender or at such other place or places as may be approved by the purchaser.

3. SPECIFICATIONS3.1. If the contractor shall have any doubt as to the meaning of any portion of the conditions of the specifications, drawings or plans, he shall (before submitting the tender) set forth the particulars thereof and submit them to the purchaser in writing in order that any such doubt may be removed.

4. MISTAKES IN DRAWINGS4.1. The Contractor shall be responsible for and shall pay for any alterations of the works due to any discrepancies, errors of omissions in the drawings or other particulars, whether they have been approved by the purchaser or not, provided that such discrepancies, errors or omissions are not due to inaccurate information or particulars furnished to the Contractor on behalf of the Purchaser. If any dimensions figured upon a drawing or plan differ from those obtained by scaling the drawing or plan the dimensions as figured upon the drawing or plan shall be taken as correct.

5. VARIATIONS5.1. No alterations, amendments, omissions, additions, suspension, or variations of the work (hereinafter referred to as “Variations”) under the contract as shown by drawings or the specifications shall be made by the Contractor except as directed in writing by the Inspector, but the Inspector shall have full power, subject to the provison hereinafter contained from time to time, during the execution of the contract by notice in writing to instruct the Contractor to make such variation without prejudice to the contract, and the Contractor shall carry out such variations and be bound by the same conditions so far as applicable as though the said variation occured in the specifications. If any suggested variation would in the

opinion of the Contractor, if carried out, prevent him from fulfilling any of his obligations or guarantees under the contract, he shall notify the inspector thereof in writing and the inspector shall decide forthwith, whether or not they shall be carried out. If the inspector confirms his instruction, the Contractor’s obligations and guarantees shall be modified such an extent as may in the opinion of the inspector, be justified. The difference of cost, if any, occasioned by any such variations shall be added to or deducted from the contract price as the case may require.

The amount of such difference, if any, shall be ascertained as determined in accordance with the rates specified in the schedule of prices, so far as the same may be applicable and where the rates are not contained in the said schedule, or not applicable they shall be settled by the Purchaser and Contractor Jointly. But the Purchaser shall not become liable for the payment of any such variations, unless the instructions for the performance of the same shall charge in respect have been given in writing by the inspector.5.2. In the event of the inspector requiring any variations,such reasonable and proper notice shall be given to the Contractor, as will enable him to make his arrangements accordingly, and in cases where goods or materials are already prepared or any designs, drawings, or patterns made or work done is required to be altered a reasonable sum in respect there of shall be allowed by the Purchaser, provided that no such variations shall, except with the consent in writing of the Contractor, be such as will involve an increase or decrease in the total price payable under the contract by more than 10 percent thereof.5.3. In any case, in which the Contractor has received instructions from the inspector for carrying out the work which either then or later, will, in the opinion of Contractor involve a claim for additional payment, the Contractor shall as soon as reasonably possible after receipt of the instructions aforesaid advise the inspector to that effect.

6. OBLIGATION TO CARRY OUT INSPECTOR’S INSTRUCTIONS6.1. The contractor shall also satisfy the Inspector that adequate provision has been made :-

(i) to carry out his instructions full and with promptitude;(ii) to ensure that parts required to be inspected before use are not used before

inspections; and(iii) to prevent rejected parts being used in error. Where, parts rejected by the inspector

have been rectified or altered, such parts shall be segregated for separate inspection and approval before being used in the work.

7. RESPONSIBILITY FOR COMPLETENESS7.1. Any fittings or accessories which may not be specifically mentioned in the specifications but which are usual or necessary are to be provided by the Contractor without extra charge and the equipment must be complete in all details.7.2. In all cases where the contract provides for tests on site, the Purchaser, except where otherwise specified shall provide free of charge such labour, materials, fuels, stores, apparatus and instruments as may be requisite from time to time and as may reasonably be demanded, efficiently to carry out such test of the plants, materials or workmanship etc. in accordance with the contract.

7.3. In the case of contracts requiring electricity for the completion of the works and for test on site, such electricity, when available, shall be supplied free to the contractor at the pressure of the ordinary supply. Unless otherwise specified, the purchaser will supply free of charge to the Contractor :-

(a) Unskilled labour;(b) Timber stores and lifting tackle necessary for the erection of the plant and all

consumable stores including fuel and lubricating oils required during erection setting to work and testing of the plant. The Contractor shall also provide-(i)Skilled labour and(ii)Tools and any other equipment which may be necessary.

8. SHIPMENT OF STORES BEYOND THE STIPULATED DELIVERY PERIOD FOR FOB CONTRACT

8.1. In the the event of the contractor failing to ship the stores duly inspected and passed within the stipulated delivery the purchaser is entitled to cancel the contract in respect of the same at the risk and cost of the contractor or invoke the clauses providing other remedies such as liquidated damages as provided in the contract. However if he so chooses the purchaser may grant an extension of the delivery period subject to :

(a) The purchaser recovering from the contractor liquidated damages as stipulated in the conditions of contract for the stores which the contractor has failed to ship within the period fixed for delivery after the inspection and a passing of the stores.

(b) The purchaser retaining the right to recover any extra expenditure which might have been incurred by the purchaser on account of the increase in Custom Duty and Freight Charges directly relatable to the delay in shipping of the stores.

8.2. The contractor shall not despatch the stores till such time an extension in terms of the above is granted by the purchaser. If the stores are despatched by the contractor before an extension letter as aforesaid is issued by the purchaser the supply of the stores shall be deemed to be subject to conditions set above.

9. WARRANTY9.1. The Contractor shall warrant that everthing to be furnished hercunder shall be free from defects and faults in design material workmanship and manufacture and shall be of the highest grade and consistent with the established and generally accepted standards for goods of the type ordered and in full conformity with the contract specifications and samples if any and shall if operable operate properly.9.2. The warranty shall survive inspection of, payment for and acceptance of the goods but shall expire 30 (Thirty) months after the delivery at ultimate destination in India or 24 (Twenty four) months from the date of commissioning and proving test of equipment at ultimate destination in India, Whichever shall be earlier, except in respect of complaints, defects and/or claims notified to the Contractor within 3 (three) months of expiry of such date. Any approval of acceptance by purchaser to the stores or of the material incorporated herein shall not in any way limit the Contractor’s liability.9.3. The Contractor’s liability in respect of any complaints defects and/or claims shall be limited to the furnishing and installation of replacement parts free of any charge or the repair of defective parts only to the extent that such replacement or repairs are attributable to or

arise from faulty workmanship or material or design in the manufactures of the stores provided that the defects are brought to the notice of Contractor within 3 (three) months of their being first discovered during the guarantee period of 3 (three) months from the date of expiry of warranty period or at the option of the Purchaser to the payment of the value expenditure and damage as here after mentioned.9.4. The Contractor shall if required replace or repair the goods or such portion there of as is rejected by the Purchaser free of cost at the ultimate destination or at the option of the Purchaser, the Contractor shall pay to the Purchaser value there of at the contract price or in the absence of such price, at price decided by the Purchaser and such other expenditure and damages as may arise by reason of the breach of the conditions herein specified.9.5. All replacement and repairs that the Purchaser shall call upon the Contractor to deliver or perform under this warranty shall be delivered and performed by the Contractor within 2 (two) months, promptly and satisfactorily.9.6. If the Contractor so desires the replaced parts can be taken over by him or his representative in India for disposal as he deems fit at the time of replacement of goods/parts. No claim whatsoever shal l lie on the purchaser for the replaced parts there after.9.7. The warranty herein contained shall not apply to any material which shall have been repaired or altered by the Purchaser or on his behalf in any way without the consent of the Contractor so as to effect the strength performance of reliability or to any defects to any part due to misuse, negligence or accident.9.8. The decision of the Purchaser in regard to contractor’s liability and the amount, if any, payable under this warranty shall be final and conclusive.

10. PORT CONSIGNEE10.1. Materials are required to be shipped to the follwing three port consignees in India.

(a) Chief Materials Manager (BI) Eastern Railway3rd Floor, 3, Koilaghat StreetKolkata-700 001 (W.B.) Fax No. 033-22487397

(b) Controller of Stores (Shipping) Central RailwayMumbai CST-400 001Tele No. 1173819

(c) Controller of Stores (Shipping) Southern RailwayChennai BeachChennai-600 023Telex No. 41575

Details of quantities to be shipped to different port consignees will be advised at the time of placement of order.

11. ULTIMATE CONSIGNEE11.1. Materials are required to be despatched to eleven different railway consignees of Indian Railways. Quantities to be despatched to different ultimate consignees have to be separately packed. Details of quantities for each consignee will be advised at time of placement of contract.

12. VENDOR ASSESSMENT (FOR UN APPROVED TENDERERS)All unapproved tenderers are required to furnish detailed information as per Vendor Assessment form enclosed at Annexure - IV except ITCC. They are also required to furnish following information.

(i) Details of stocks of raw material held.(ii) If they are a small scale unit regd. with National Small Industries Corporation Ltd.,

/New Delhi they should furnish full particulars of items, registration, currency period and monetary limit etc.

13. DISTRIBUTION OF PROCURABLE QUANTITY13 (i) The Purchaser reserves the right to distribute the procurable quantity on one or more of the eligible tenderers. Zone of consideration of such eligible tenderers will be the right of the Purchaser.

13. (ii) (a) : Whenever such distribution /splitting of the tendered/procurable quantity is made, the quantity distribution will depend (in an inverse manner) upon the differential of rates quoted by the tenderers (other aspects i.e. adequate capacity cum capability, satisfactory past performance of the tenderers, out standing orders load for the railway making the procurement, quoted delivery schedule vis a vis the delivery schedule incorporated in the tender enquiry etc. being same/similar) in the manner detailed in he table below-

Price differential between L1 & L2 Quantity distribution ratio between L1& L2

Up to 3% 60:40

More than 3% and up to 5% 65:35

More than 5%

At least 65% on the L1 tenderer. for the quantity to be ordered on the L2 tenderer, TC/TAA should decide keeping in view Conditions laid down in paras (iv) (b) (iii) and (iv) at page 3 of Board’s letter dt. 5/10/0713. (ii) (b) : If splitting of quantity is required to be done by ordering on tenderers higher

than L2 tenderer, then the quantity distribution Proportion amongst the tendererswill be decided by extrapolation of the model as indicated in para 13 (ii) (a)above.

13. (ii) (c) : The purchaser reserves the right to counter offer the lowest acceptable rate for bulk ordering to the higher tenderer’s. In the event of rejection of such counteroffer’s, the purchaser will reserve their right to decide on the quantity distribution ratio/proportion.

(iii) The rate of the highest eligible tenderer within the zone of consideration has to be,per-se, reasonable.

(iv) In the cases of inadequate capacity - cum - capability, dissatisfactory past performance, large quantity of outstanding orders (liquidation of which will take very long time etc., the Purchaser shall have the right to distribute the procurable quantity amongst tenderers with due consideration to these constraints and in such a manner as would ensure timely supply of materials in requisite quantity to meet the needs of DLW regardless of inter-se ranking of the tenderers and in a fair and transparent manner with due conformity to the Principle of natural Justice and Equity.

14. ORDERING ON PART-II APPROVED SOURCE14. (i) Ordering on Part-II approved source with competitive price ranking can be

considered beyond 15% in case that source has successfully exceuted a larger quantity order in the same Railway unit or other Railway Units/Pus in the preceding 3 years, Successful execution will be signified by both quantitative and qualitative performance. Upper limit of quantity to be ordered on such a source will not exceed 25% of the net procurable quantity in a given procurement case with another 5% on new source in deserving cases with strict compliance of extant procedure on such educational ordering. That is to say the ordering quantity on a Part-II source can be upto 15% or the highest quantity of a past order, successfully executed in the preceding 3 years in the same Railway unit or other Railway units/PUs, whichever is higher, subject to a maximum of 25% of the net procurable quantity in the given procurement case.

14. (ii) It is also likely that there may be cases where more than one Part-II source are within the zone of consideration on the basis of competitive price ranking with satisfactory past performance on that Railway. In such cases each Part-II source can be considered for ordering in the same manner as indicated above.“Aggregate Quantity to be ordered on all Part-II approved vendors taken together, will not exceed 25% of the net procurable quantity, in a given procurement case”.

14. (iii) All Part-II approved tenderers must submit attested photocopies of POs, inspectioncertificates and receipt notes / certificates related to the maximum quantity of the material under procurement, successfully supplied by them in any single order placed on them over the preceding three years by any Zonal Rly/PU. Such tenderers are to note that non- submission of such documents shall be taken as their not having any such past performance and their offers shall be considered further as per extant rules and no back reference in this regard will be made to them”.

14. (iv) Ordering on part-II source and educational orders (Developmental/Trial order) will not be considered as splitting of quantity.

15. TAX PAID IDENTIFICATION NO.Tenderers must quote their tax paid identification No. (TIN) in their quotation otherwise their quotation will not be entertained in view of UP also adopting VAT w.e.f. 01/01/2008. TIN must also be quoted on the bills by the suppliers, failing with their payment can not be released :

16. IMPORT CASES16 (i) In import case PBG/WBG may only be waived based on merit of case keeping in

view the past record of the firm’s cooperation in settling the past outstanding cases (warranty failure etc.)

16. (ii) In very exceptional cases payment should be made on WTC In import cases payment procedure should be as per existing terms and conditions given in bid documents. 100% payment through LC against WTC may be allowed only in exceptional cases.

16. (iii) In case of waival of PBG/WBG in import cases the procedure of LC opening and payment will be as follows :-(a) LC to be opened for 100% value (FOB).(b) 90% payment to be made on presentation of documents (B/L, WTC, invoice,

country of origin certificate etc.).(c) Balance 10% payment will be made after receipt of material by ultimate

consignee ie. Dy. CMM/Depot., DLW and inspection there of.

17. RECOVERY OF LIQUIDATED DAMAGES17.1 Upper limit for recovery of Liquidated Damages in Supply Contracts will be 10% (Ten percent) of value of contract irrespective of delays, unless otherwise provided, specifically in the contract.17.2 DLW shall recover from the Contractor, Liquidated Damages not by way of penalty, a sum equivalent to 2% (Two percent) of the price of any stores (including elements of taxes, duties, freight, etc.) which the contractor has failed to deliver within the period fixed for delivery in the contract or as extended for each month or part of a month during which the delivery of such stores may be in arrears where delivery there of is accepted after expiry of the aforesaid period, subject to a maximum of 10% (ten percent) of value of the delayed supplies.

SECTION-IV

ANNEXURES TABLE OF CONTENTS

Clause Page No.

1. Offer form for Imported Offers 1-2

2. Offer form for Indigenous Offer 3-4

3. Proforma for Performance Statement 5

4. Proforma for information regarding Equipment & Quality Control 6

5. Deleted 7

6. Proforma for Bank Guarantee for Bid Guarantee 8-9

7. Deleted 10

8. Details of shipping arrangements to be incorporated in

C & F /CIF/TURNKEY/F.O.R. contracts for import 11-14

9. Details of shipping arrangements to be incorporated for liner

cargoes in respect of FOB/FAS contracts for import 15-16

10. Proforma for indicating the particulars of charges for which shipping

space is required to be arranged by the Shipping Co-ordination

and Chartering organisation of the Ministry of Transport 17

11. Proforma for Statement of Deviations 18

12. Proforma for Contract Performance Guarantee Bond 19-20

13. Draft for 10% Bank Guarantee Form 21-22

14. Work Test Certificate 23

15. Check List 24

ANNEXURE-4(Please see clause, 4,2 (b) of

'Instructions to Tenderers')

PROFORMA FOR EQUIPMENT AND QUALITY CONTROL

Tender No.................................Date ofOpening....................................Time.........................Hours.

Name of theFirm...............................................................................................................................

Note : All details requi r ed only for the items t e ndered.

1. Name & full address of the firm2. Telephone & Telex No. Office/Factory/Works3. Telegraphic address4. Location of the Manufacturing factory5. Details of Industrial Licence, wherever required as per statutory regulations.6. Details of plant & machinery erected and functionning in each Deptt. (Monographs

& description pamphlets be supplied if available).7. Details of the process of manufacture in the factory in brief.8. (i) Details & Stock of raw material held.

(ii) It they are a small scale unit regd. with NSIC, Ltd. New Delhi, They should furnish full parti culars of items, registration, curreney period and monetary limit etc.

9. Production capacity of items (s) quoted for, with the existing plant & machinery9.1. Normal9.2. Maximum

10. Details of arrangement for quality control of product such as laboratory, testing equipment etc.

11. Details of staff.11.1. Details of technical supervisory staff-in-charge of production & quality

control.11.2. Skilled Labour Employed.11.3. Unskilled labour employed.11.4. Maximum No. of workers (skilled & unskilled) employed on any day during

the 18 months preceding the date of application.12. Whether stores are tested to any standard specification, if so, copies of original test

certificates should be submitted in triplicate.13. Are you registered with the Director General of Supplies & Disposals, New Delhi,

INDIA. If so, furnish full particulars of registration, period of currency etc.14. Are you a small Scale unit, registered with the National Small Industries

Corporation Ltd., New Delhi, INDIA. If so, furnish full particulars of registration, currency period etc.

Signature and seal ofthe Manufacturer/Tenderer

ANNEXURE-5

D E L E T E D

ANNEXURE-6(Please see clause, 6.1 (b) of

'Instructions to Tenderers')

PROFORMA BANK GUARANTEE FOR BID GUARANTEE(ON BANK'S LETTER HEAD WITH ADHESIVE STAMP)

Ref..............................Date...................................

No.............Bank Guarantee

..........................................To

THE PRESIDENT OF INDIA, acting through the FA & CAO,Diesel Locomotive Works,Varanasi (U.P.), INDIA

Dear Sir,

In accordance with your invitation to tender No........................................................................... forsupply of.........................................................M/s....................................................................... hereinafter called the tendererwith the following Directors on their Borad of Directors/Partners ofthe firm :

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.

wish to participate in the said tender for the supply of...........................................................................................................................................................................................................................

As a Bank Guarantee against Bid Guarantee for a sum of...................................................................................................................................................................(In words and figures) valid for (180) one hundred and eighty days from............................................................................ required to be submitted by the tenderer as a condition for the participation, this bank hereby guarantees and undertakes during the above said period of (180) one hundred and eighty days to immediately pay, on demand by the Controller of stores, Diesel Locomotives, Varanasi, (U.P.) INDIA, in writing the amount of.......…… ………………………………………………………..…………………………………………………………………………………………………

… (in words & figures) ot the Controller of Stores, Diesel Locomotive Works, Varanasi, (U.P.), INDIA, and without any reservation and recourse, if :-

i. the tenderer after submitting his tender, modifies the rates or any of the terms and conditions thereof, except with the previous written consent of the purchaser; or

ii. the tenderer withdraws the said bid within 150 days after opening of bid; oriii. the tenderer having not withdrawn the bid, fails to execute the contractual

documents within the period provided in the contract; oriv. having executed the contract fails to give the bonds so aforesaid within the

period provided in the contract.The guarantee shall be irrevocable and shall remain valid up to 4.00 P.M.

on................................ ..............................................................if further extention to this guarantee is required, the same shall be extended to such required Period on receiving instruction from M/s........................................................................................................................................on whose behalf this guarantee is issued.

Date................................. Signature..................................Place................................. PrintedName............................ Witness...............................................................................

(Designation)......................................... (Banks's Common Seal)

ANNEXURE-7

D E L E T E D

ANNEXURE-8(Please see clause, 6.2 of

'Instructions to Tenderers')

DETAILS OF SHIPPING ARRANGEMENTS FOR LINER CARGOES IN

RESPECT OF C & F CIF TURNKEY F.O.R. CONTRACTS FOR IMPORTS

1. (A) SHIPMENTS FROM PORTS OF U.K. INCLUDING NORTHERN IRELAND (ALSO EIRE) FROM THE NORTH CONTINENT OF EUROPE GERMANY, HOL- LAND, BELGIUM, FRANCE, NORWAY, SWEDEN, DENMARK, FINLAND AND PORTS ON THE CONTINENTAL SEA-BOARD OF THE MEDITERRANIAN (i.e. FRENCH AND WESTERN ITALIAN PORTS). TO PORTS IN INDIA.

The Seller should arrange shipment of the goods by vessels belonging to the member Lines of the India-Pakistan-Bangladesh Conference. If the Seller finds that the space on Conference Lines' is not available for any specific shipment, he should take up with India- Pakistan-Bangladesh Conference. Conferity House, East Grinstead, Sussex (U.K.) for providing Shipping space and also inform the Shipping Coordination Officer, Ministry of Transport, Deptt, of Surface Transport, New Delhi (Cable : TRANS-CHART, NEW DELHI; Teles: VAHAN ND-2312, 2448 & 3104).

The Sellers should arrange shipment through the Government of India's Forwarding Agents, M/s. Schenker & Co., 2000-Hamburg, Cable: SCHENKERCO HAMBURG or obtain a certificate from them to the effect that shipment has been arranged in accordance with instructions of the Ministry of Transport, Deptt. of Surface Transport, (TRANSCHART). New Delhi.

(B) SHIPMENTS FROM (ROSTOCK)Goods under this contract would be shipped by the national shipping companies of the

Contracting Parties operating bilateral shipping service and vessels under the flag of third countries in accordance with the agreement between the Government of German Democratic Republic and the Government of Republic of India in the Field of Merchant Shipping signed on 9-1-1979. as amended uptodate

(c) SHIPMENT FROM ADRIATIC PORTS OF EASTERN ITALYThe Seller should arrange shipment of the goods by vessels belonging to the following

IndiaMember lines :

1. The Shipping Corporation of India Ltd.2. The Scindia Steam Navigation Co. Ltd.3. India Steamship Co. Ltd.For the purpose of ascertaining the availability of suitable Indian vessels and granting

dispensation in the event of their non-availability the Seller should give adequate notice about the readiness of each consignment from time ot time at least six weeks in advance of the required position to M/s. Schenker & Co., 2000 HAMBURG (Cable : SCHENKERCO

HAMBURG) and also endorse a copy thereof to the shipping Co-ordination officer, Ministry of Transport, Deptt. of Surface Trans-port, New Delhi (Cable : TRANSCHART, NEW DELHI : Telex: VAHAN ND-2312, 2448 & 3104).

The Seller sholuld arrange shipment through the Government of India's Forwarding Agents, M/s. Schenker & Co., Hamburg (Cable : SCHENKERCO, HAMBURG) or obtain certificate from them the effect that shipment has been arranged in accordance with the instructions of the Ministry of Transport, Deptt, of Surface Transport, (TRANSCHART), New Delhi.

(d) SHIPMENTS FROM POLANDShipments under this contract would be made by the National flag lines of two parties

and vessels of the third flag conference lines, in accordance with the agreement between the Government of the Republic of India and the Govt. of Polish People's Republic regarding shipping co-operation dt. 27.6.1960 as amended uptodate.

D E L E T E D

(e) SHIPMENTS FROM RUSSIAShipment under this contract should be made in accordance withe the Agreement

between the Government of Republic of India and the Government of the Russia on Merchant Shipping. 1976, as amended uptodate, by vessels of Indo-Soviet Shipping Service.

(f) SHIPMENT FROM JAPANThe shipment of goods should be made by Indian vessels to the maximum extent

possible subject to a minimum of 50%The Seller should arrange shipment of the goods in consultation with the Embassy of

India in Japan, Tokyo to whom details regarding contract number nature of cargo quantity port of loading/discharge name of the govt. consignee, expected date of readiness of each consingment etc. should be furnished at least six weeks in advance of the required position.

Note :- The copies of such contracts are to be endorsed both to the Attache (Commercial), Embassy of India in Japan, Tokyo and the Shipping Co-ordination officer, Ministry of Transport, Deptt. of Surface Transport, New Delhi.

(g) SHIPMENTS FROM AUSTRALIA, ALGERIA, BULGARIA, ROMANIA, EGYPT

The seller shall arrange shipment of the goods by Indian flag vessels to the maximum extent possible subject to a minimum of 50%. For the purpose of ascertaining the availability of suitable Indian vessels, the seller shall give adequate notice of not less than six weeks about the readiness of each consignment to the Shipment Corporation of India Ltd. Shipping House, 229/232, Madame Came Road, Mumbai-400 021 (CABLE : SHIPINDIA BOMBAY) and also endorse a copy thereof to the Shipping Co-ordination Officer, Ministry of Transport Deptt. of Surface Trans-port, New Delhi; (Cable : TRANSCHART, NEW DELHI. Telex : VAHAN ND-2312, 2448 & 3104.)

(h) SHIPMENTS FROM PAKISTANThe shipment of cargoes should be made by Indian vassels to the maximum extent

possible subject to a minimum of 50% .Shipping arrangements should be made by Indian vessels to the maximum extent

possible subject to minimum of 50%Shipping arrangements should be made by the Sellers in consultation with M/s. Mogul

Line Ltd., 16-Bank Street Fort, Mumbai-400023 (Cable : MOGUL MUMBAI Telex: 011-4049 MOGUL) to whom details regarding contract number nature of cargo quantity port of loading/discharging name of Government consignee expected date of readiness of each consignment etc, shold be furnished at least six weeks in advance of the required position with a copy there of endorsed to the shipping Co-ordination Officer, Ministry of Transport, Deptt of Surface Transport (Chartering Wing) New Delhi (Cable : TRANSCHART, NEW DELHI Telex: VAHAN ND-2312, 2448 & 3104).

(i) SHIPMENTS FROM U.S. ATLANTIC & GULF PORTSThe Seller should arrange shipment of the goods by vessels belonging to the member

Lines of the India-Pakistan-Bangladesh-Ceylon and Burma Outward Freight Conference. If the Seller finds that the space on the Conference Lines vessels is not available for any specific shipment he should take up with India-Pakistan-Bangladesh-Ceylon & Burma Outward Freight Conference, 19, Rector Street; New York N. Y. 10006 U. S. A. for providing shipping space and also inform the Shipping Co-ordination Officer, Ministry of Transport, Deptt of Surface Transport New Delhi (Cable; TRANSCHART, NEW DELHI; TELEX : VAHAN ND-2312,2446 & 3104).

(i) SHIPMENTS FROM ST. LAWRENCE AND EASTERN CANADIAN PORTSThe Seller should arrange shipment of the goods by vessels belonging to the following

shipment Lines:(i) The Shipping Corporation of India Ltd.(ii) The Scindia Steam Navigation Co. Ltd.If the Seller finds that the space in the vessels of these Lines is not available for any

particular consignments he should inform the Shipping Co-ordination Officer, Ministry of Transport, Deptt. Of Surface Transport, New Delhi (cable : TRANSCHART, NEW DELHI, Telex: VAHAN ND- 2312, 2448 & 3104) immediately so that dispensation from the shipping lines concerned to use alternative lifting may be sought.

(k) SHIPMENTS FROM WEST COAST PORTS OF U.S.A., CANADA AND OTHER AREAS NOT SPECIFICALLY MENTIOND ABOVE

The Seller should arrange shipment of the goods by Indian vessels to the maximum extent possible subject to a minimum of 50%. For the purpose of ascertaining the availability of suitable Indian vessels and granting dispensation in the event of their non-availability the Seller should furnish the details regarding contract number nature of cargo, quantity, port of loading/discharge, name of the Govt. consignee and expected date of readiness of each consignment etc. to the Shipping Co-ordination Officer, Ministry of Transport, Deptt. of Surface Transport, New Delhi (Cable : TRANSCHART, NEW DELHI : Telex : VAHAN ND-2312, 2448 & 3104) atleast six weeks in advance of the required position.2. BILLS OF LADING

(i) C.I.F./C&F/TURNKEY SHIPMENTSThe Bills of Lading should be drawn to indicate ‘shipper’ and ‘Consignee’ as under :-SHIPPER : The C.I.f./C&F/TURNKEY SUPPLIERS concernedCONSIGNEE : As per Consignee’s particulars in the contract (The name and address of the ‘Port Consignee’ and ‘Ultimate Consignee’ both should be indicated).

(ii) F.O.R. SHIPMENTSThe Bill of Lading should be drawn to indicate Shipper and Consignee as under :-SHIPPER : The F.O.R. suppliers concerned. CONSIGNEE : Suppliers’ Indian Agents on order.

Note :- 1. More over the name of the ‘Purchaser’ and ‘Ultimate Consignee’ should apear in the body of the Bills of Lading as the ‘Notify Party’ or as a remark.

2. Two non-negotiable copies of the Bills of Lading indicating the freight amount and discount, if any allowcd should be forwarded to the shipping Co-ordination Officer, Ministry of Transport, Deptt. of Surface Transport, (Chartering Wing),New Delhi after the shipment of each consignment is effected.

3. The Seller should avoid the use of over-aged vessels for the shipment of the goods under the contract and if so used the cost of additional insurance, if any,shall be borne by the Seller.

ANNEXURE-9(Please see clause, 16,2 of

‘Instructions to Tenderers’)

DETAILS OF SHIPPING ARRANGEMENTS FOR LINER CARGOES IN

RESPECT OF F.O.B. F.A.S. CONTRACTS FOR IMPORTS

1. Shipping arrangements will be made by the Ministry of Shipping (Chatering Wing), New Delhi (Cable : TRANSCHART : NEW DELHI; Telex : VAHAN ND-2312, 2448 &3104), through their respective Forwarding Agents/Nominees as mentioned below, to whom adequate notice about the readiness of cargo for shipment should be given by the seller from time to time atleast six weeks in advance of the required position for finalising the shipping arrangements.

Area Forwarding Agents/Nominees

(a) U.K. including Northern lreland (also Eire), M/s. Schenker & Co.the North Continent of (West Germany, 2000 Germany-11, PO Box No. 110320, Holland, Belgium France, Norway, Sweden, (CABLE : SCHENKERCO HAMBURG) finland and Denmark) and ports on the Telex : 217004-303 SH D 212675Continental Sea Board of the Mediterranian Telephone No. 040/361351 (i.e. France and Western Italian ports) andalso Adriatic ports.

(b) U.S.A. & Canada OPT Overseas Project Transport, INC. (A Thyssen Haniel Logistic Co.,46, Sellers Street, Kearny-NJ 0702, U. S.

A.Tel. : (201) 998-7771Telex : 673-3586 OPT Fax. : (201) 998-7833.

(c) Japan The First Secretary (Commercial), Embassy of India, Tokyo, Japan, (Cable INDEMBASSY TOKYO) Telex : INDEMBASSY J 24850Telephone 262-2391

(d) Australia, Algeria, Bulgaria, Romania. The Shipping Corporation of India Ltd.Czechoslovakia, Egypt Shipping House 229/232

Madame Cama Road, Mumbai 400 021

(Cable : SHIPINDIA Mumbai) Telex : 31 2209 SCID IN Telephone : 232666. 232785

(e) Russia The Secretaries, Indo-Shipping Service,C/o The Shipping Corporation of India Ltd.‘Shipping House’ 229/232, Madame CamaRoad, Mumbi-400 021.(Cable : SHIPINDIA MUMBAI FOR

SOVIND SHIP)Telex : 31-2209 SCID IN Telephone : 232666

(f) Poland The Secretaries, Indo-polish ShippingService,

Ltd.,

INDOPOL)

C/o The Shipping Corporation of India

‘Shipping House’229/232, Madame Cama Road, Mumbai-4000 021.(Cable : SHIPINDIA Mumbai FOR

Telex 31-2009 SCID IN Telephone : 23666.

(g) Pakistan The Mogul-Line Ltd.,16, Bank Street,Fort, Mumbai-400 023(Cable : MOGUL MUMBAI) Telex : 011-4049 (MOGUL) Telephone : 252785.

(h) Other areas not specifically The Shipping Co-ordination Officer, Mentioned above Ministry of Transport, Department of

SurfaceTransport, (Chartering Wing), New Delhi. (Cable : TRANSCHART, NEW DELHI) Telex : VAHAN ND-2312, 2448 & 3104

2 BILL OF LADINGThe Bill of Lading should be drawn to indicate ‘Shipper and Consignee’ as under :-SHIPPER : The Government of INDIA.CONSIGNEE : As per consignee’s particulars in the contract, (The name and address of the ‘Port Consignee’ and ‘Ultimate Consignee’ should both be indicated).

3. Two non-negotiable copies of the Bill of Lading indicating the freight amount and discount, if any allowed, should be forwarded to the Shipping Co-operation Officer,

Ministry of Transport, Department of Suface Transport, (Chartering Wing), ParivahanBhawan, New Delhi after the shipment of each consignment is effected.

4. The Seller should avoid the use of over-aged vessels for the shipment of the goods under the contract and if so used, the cost of additional insurance if any shall be borne by the Seller.

ANNEXURE-11(Please see clause, 2.3, 2.4, and 7.6 of

‘Instructions to the Tenderers’)

PROFORMA FOR STATEMENT OF DEVIATIONS(1) The following are the particulars of deviations from the requirements of the

tender specifications :-

CLAUSE DEVIATION REMARKS (Including

justification)

(2) The following are the particulars of deviations from the requirements of theInstructions to Tenderers, General and Special conditions of Contract :-

CLAUSE DEVIATION REMARKS (Including

justification)

Signature and seal of theManufacturer/Tenderer

Note :- Where there is no deviation, the statement should be returned duly signed with an endorsement indicating “No Deviations”.

ANNEXURE-12(Please see clause, 21 of

‘General Conditions of Contract’)

PROFORMA OF BANK GUARANTEE FOR PER FORMANCE (ON BANK’S LETTER HEAD WITH ADHESIVE STAMP)

Ref.................... Date...............................

.......................... To

Bank Guarantee No.

THE PRESIDENT OF INDIA, Acting through the FA & CAO,Diesel Locomotive Works,Varanasi (U.P.), INDIA

1. Against contract vide Advance Acceptance of theTenderNo...........................................................................................dated....................................covering supply of...........................................…………………………………….......................................(hereinafter called the said ‘contract’) entered into between the President of India and........................................................(here in after called the Contractor) this is to certify that at the request of the Contractor we...................................................................................................... Bank Ltd., are holding in trust in favour of the President of India, the amountof.................................................................................................................................................................................(Write the sum here in words)to indemnity and keep indemnified the President of India (Govt. of India) against any loss or damage that may be caused to or suffered by the President of India (Govt of India) by reason of any breach by the Contractor or any of the terms and conditions of the said contract and/or the performance thereof. We agree that the decision of the President of India (Govt. of India), whether any breach of any of the terms and conditions of the said contract and/or in the performance thereof has been committed by the Contractor and the amount of loss or damage that has been caused or suffered by the President of India (Govt. of India) shall be final and

binding on us and the amount of the said loss or damage shall be paid by us forthwith on demand and without demur to the President of India (Govt. of India)

2. We................................................................... Bank Ltd., further agree that the guarantee herein contained shall remain in full force and effect during the period that wouldbe taken over satisfactory performance and fulfilment in all respects of the said contract by the Contractor. e. till...................................................................(viz. the date, up to 12 months after the date oflast shipment/delivery of the goods ordered) hereinafter called the ‘said date’ and that if any claim accrues or arises againstus.............................................................................................Bank Ltd., by virtue of this guarantee before the said date the same shall be inforceable against us..................................................................................................... Bank Ltd., notwithstandingthe fact that the same is enforce within six months after the said date, provided that notice of any such claim has been given to us..................................................................Bank Ltd., bythe President of India (Govt. of India) before the said date, Payment under this letter of guarantee shall be made promptly upon our receipt of notice to that effect from the President of India (Govt, of India).

3. It is fully understood that this guarantee is effective from the date of the said contract and that we.............................................. Bank Ltd. under take not to revoke this guarantee during its currency without the consent in writing of the President of India (Govt, of India).

4. We undertake to pay to that Government any money so demanded notwithstanding and dispute or disputes raised by the Contractor in any suit or proceeding pending before any court or Tribunal relating thereto our liability under this present being absolute and unequivocal.

The payment so made by us under this bond shall be a valid discharge of our liability for payment thereunder and the Contractor shall have no claim against us for making such payment.

5. We.....................................Bank Ltd., further agree that the President of India (Govt. of India) shall have the fullest liberty without affecting in any manner our obligations hereunder it vary any of the terms and conditions of the said contract or to extend time of performance by the Contractor from time to time or to postpone for any time or from time to time any of the powers exerciseable by the President of India (Govt. of India) against the said Contractor and to forebear or enforce any of the terms and conditions relating to the said contract and We............ ……………….………….…………....Bank Ltd., shall not released from our liability under this guarantee by reason of any such variation or extension being granted to the said Contractor or for any forbearance and/or omission on the part of the President of India or any indulgence by the President of India to the said Contractor or by any other matter or thing what-so-ever, which under the law relating to sureties, would. but not for this provision have the effect of so releasing us from our liability under this guarantee.

6. This guarantee will not be discharged due to the change in the constitution of theBank or the Contractor.

7. BG (s) being furnished will be honoured under all conditions. Any doubt about the genuineness of stamp-paper used in BG will not render BG invalid because stamp-paper has been purchased by the vendor/contractor of DLW/Varanasi namely M/S.

Date .........................Place .........................Witness .............. ....... ......

.............................................. for contract no. ................................................................. dated.................................................... and , therefore, is responsible for its genuiness.

Name..................................

Signature.........................................Printed

......................................................

................................ Bank’s Common Seal

(Designation)

ANNEXURE-13(Please see clause, 13.1 (b) or

‘Instructions to Tenderers’)

PROFORMA OF BANK GUARANTEE FOR 10% CONTRACT VALUE

TOWARDS WARRANTY GUARANTEE

ToTHE PRESIDENT OF INDIA, Acting through the FA & CAO, Diesel Locomotive Works,Varanasi-221004 (U.P.), INDIA

Sub:- GuaranteeNo...........................................................for....................................(Amount).

Covering equipment (s) SerialNo................................................................................supplied to

(Consignee/s)Ref. Contract

No.....................................................dated.........................................................

Placed onM/s..........................................................................................................................

1.WHEREAS M/s...............................................................on of our constituents, (hereinafter called the “Seller”) have agreed to sell to you (hereinafter referred to as the “Government”). No. of......................... (give description ) as per contract No............................ dated ............................................(hereinafter called “the said contract”)

2. AND WHEREAS according to the terms of said contract, it has been stipulated that payment of 100% of the value of the stores would be made provided that the Seller furnish to the Purchaser a Bank Guarantee from a recognised bank acceptable to the Purchaser for 10 per cent of the value of the said contract valid for a period covering in full the Guarantee period as per the warranty clause of the said conditions of the contract, being the conditons attached to and forming part of the said contract.

3. AND WHEREAS the Sellers have approached us to give the said Bank Guarantee on their behalf in your favour for an amount representing 10 percent of the value of the stores despatched which you have agreed to accept.

4. That in consideration of the promises and at the request of the said Sellers, we hereby irrevocably undertake and guarantee to pay to the Government of India or at such other place as may be determined by you forthwith on demand and without any demur any sum upto a maximum amount of.............................. (Rs..........................) representing 10 percent of the value of the stores despatched under the said contract in case the sellers make default in paying the said sum or make any default in performance observance or discharge of the guarantee contained in the said contract.

5. We .................................................................................. (Name & Address of Bank)agree that the decision of the Government whether any default has occured or has been committeed by the Sellers in the performance observance or discharge of the guarantee aforesaid shall be conclusive and binding on M/s...............................................................

6. Government shall be at liberty from time to time to grant or allow extension of time or give other indulgence the said Sellers or to modify the terms and conditions of the contract with the said Sellers without affecting or imparing this guarantee or our liability hereunder.

7. We..........................................................(Name & Address of Bank) undertake to pay to the Government any money so demanded not withstanding any dispute or disputes raised by the Sellers in any suit or proceeding pending before any court or Tribunal relating there to our liablity under this present being absolute and unequivocal.

The payment so made by us under this bond shall be a valid discharge of our liability for payment there under and the Sellers shall have no claim against us for making such payment.

8. This bank guarantee comes into force when the balance ten percent of the value of the stores shipped per Vessel ........................................vide Bill of Lading No..................................... dated......................... or R/R No.........................................dated........................................ (in the case of indigenous Contracts) under the said contract, has been paid will remain in full force and effect

upto............................... i.e. for.........................................months counted from the date of placing the stores in service shall continue to be enforceable for further five months i.e. upto (date), hereinafter called the said date.

9. This guarantee will not be discharged due to the change in the constitution of theBank or the Sellers.

10. That no claim under this guarantee shall be entertained by us unless the same has been preferred by the Government within the said date.

11. BG (s) being furnished will be honoured under all conditions. Any doubt about the genuineness of stamp-paper used in BG will not render BG invalid because stamp-paper has been purchased by the vendor/contractor of DLW/Varanasi namely M/s............................................................for contract no. .........................dated.......................................... and, therefore, is responsible for its genuiness.

Date ......................... Place ......................... Witness .........................

Signature………………………….

Name..................................

......................................................

................................ Bank’s Common Seal

Printed

(Designation)

ANNEXURE-14(Please see clause 33 or

‘General conditions f contract’)

WORK TEST CERTIFICATE

Work Test Certificate for imported items should be from manufacturer(On the letter head of the manufacturer)1. P.O. No.

2. Description & Part No.

3. DLW Drg. and specification reference :(In case the same is as per manufacturer’s Drg. & Specn. It shoud be mentioned)

4. Vendor indentification marking on the components (if any) :

5. Product serial no details, if applicable :

6. Certification- that the material indentified above has been processed inspected & tested in accordance with requirements of the purchase Order (including applicable drawings & specification and other technical conditions stipulated in the (PO) and amendments (if any) and conforms to the requirements there of. All the relevent records i.e. in - process inspection and testing records as well as other technical information may be required by DLW Will be retained for the warranty period.7. We guarantee to replace at destination any parts where manufacturing defects in material or workmanship have been determined in line with the terms stated in the contract.

Authorised Signatory (Name & designation)

Suppliers Stamp

CHECK LIST

ANNEXURE-15(Please see clause 3.4 of Section I,

‘Instructions to Tenderers’)

(I) Have you submitted the authorisation letter authorising your agent to quote on this tender?

Yes/No (II) Have you indicated the complete name and address of the agents and details of the

services to be rendered by the agents?Yes/No

(III) Have you submitted a copy of your agreement with your Indian agents” Yes/No

(IV) Are the agents authorised to deal with this tender as your sole selling agent and confirm that you have not appointed any other sole selling agents for this tender? Yes/No

(V) Have you indicated the amount of remuneration for the agents included in the offer?

Yes/No (VI) Is your agent authorised to give all clarifications in connection with this tender

including confirmation/extension of the validity of the offer?Yes/No

(VII) Is your agent also authorised to give clarifications of technical nature on this tender?

Yes/No(VIII) Will your agent receive communications on your behalf?

Yes/No(IX) Will your agent assist the Purchaser in customs classification and insurance survey

etc. while clearing the goods or for lodging claims on the insurance companies in case the goods are lost/received in damaged conditions if so required by the purchaser? Yes/No

(X) Are your Indian agents competent enough to undertake the entire after-sales servive of the items on this tender on behalf of the manufacturer? Yes/No

(XI) If answer (X) above is yes, then have you indicated the details of infrus-tructure available with your agents for providing these services? Yes/No

(XII) Do you have any say in the management of the Company working as your Agent”if so have you indicated the precise relationship and the details of commonDirectors/Partners, if any?

Yes/No(XIII) Do you or your Indian Agents have mutual interest in each other’s If yes. have you

furnished details there of?. Yes/No(XIV) Have you indicated your Indian Agent’s income Tax Permanent Account number?

Yes/No (XV) Are you aware that any payment against the contract if placed at your Indian Agent

directly by you in currency other than in Indian rupees in aginst the Indian Laws?Yes/No

(XVI) Are you aware that failure to disclose the full amount of remuneration/agency commission payable to your India Agents shall render the contract void. Yes/No

ANNEXURE-1(Please see clauses-1.2 and 7.5 of

To,THE PRESIDENT OF INDAActing through the Controller of StoresDiesel Locomotive Works, Varanasi (U.P.), INDIAOffer FORM for Tender No..................................Date of opening.......................Time.......................Hours

‘Instruction to Tenderers’)

1. We......................hereby certify that we are established firm of manufacturers Ms.....................................With factories at..............................which are fitted with modern equipment and where theproduction methods. quality control and testing of all materials and parts manufactured or used by us are open to inspection by the representative of Indian Railways. We hereby offer to supply thefollowing items at the prices and within the period of delivery indicated below :

Item Description Specification Unit Qty. Price Per unit exclusive ofAgency

CommissionTotal C.I.F. value of

offer per unit (inclusiveNo Agency commission (in the per unit of Agency commission Terms of Delivery Gross

currency/currencies of manu-facturer’s conuntry/countries

or U.S.$

(In the currency/currencies of

manufacturer’s country/countries

or U.S.$

in the currency/curren-cies of manufacturer’s

country/countries or U.S.

payment period Weightand dime

nsions of pac- kage per unit

1 2 3 4 5 6 7 8 9 10 11

F.O.B. port of Country of Suply 6 (a)

C&F Indian port6 (b)

C.I.F. IndianPort6 (c) (6(c)+7)

Break up of C.I.F. Price per Unit in ‘Columu-8’

FOB Freight Insurance Agency commission Total

2. We are agreeable to payment of agency commission to our Agents in India in non-convertible Indian Rupees. The relevant information is given below. (To be filled in by the tenderer)

(a) The name and address of the Agent................................................(b) Service to be rendered by the Agent................................................(c) Amount of remuneration for the Agent.............................................

3. it is hereby certified that we have understood the Instructions to Tenderers, and also the General and Special Conditions of Contract attached to the tender and have thoroughly examined specifications drawings and/or pattern. qoted in the ‘Schedule of Requirement’s and are thoroughly aware of the nature of stores required and our offer is to thesupply stores strictly in accordance with the requirements and according to the terms of the tender. We agree to abide soley by the General and special Contitions of Contract and other conditions of the tender in accordance with the tender documents if the contract is award to us.

4. We hereby offer to supply the stores detailed above or such portion thereof, as you may specify in the acceptance of tender at the price quoted and agree to hold this offer open for acceptance for a period of 150 days form the date of opening of tender. We shall be bound by the communication of acceptance despatched within the prescribed time.

5. Earnest Money/Bid Guarantee for and amount equal to.................................is enclosed in the form specified in Clause-6 of the ‘Instructions to Tenderers’.Dated.....................................................Note- (i) The tenderers may prepare their own offer forms as per this proforma.

(ii) No charge in the proforma is permissible.(iii) No erasurers or alterations in the text of the offer are permitted. Any correction

made in the offer shall be initialled by the tenderer. Signature and Seal of(iv) Please refer to clause 3.2 of Instructions to Tenders be for filling column 8. Manufacturer / Tenderer

(v) FIGURES IN Columne 6 to 9 (both inclusive) Should be in both figures and words

ANNEXURE-2(Please see clauses-1.2 and 7.5 of

To, ‘Instruction toTenderers’)

THE PRESIDENT OF INDAActing through the Controller of Stores OFFER FORMS for Tener No.....................................Date of opening..................................Diesel Locomotive Works,Varanasi (U.P.), INDIA Time..................Hours

1. We...........................hereby certify that we are established firm of manufacturers Ms.................................With factories at.....................................................................................which are fitted with modern equipment and where the production methods. quality control and testing of all materials and parts manufactured or used by us are open to inspection by the representative of Indian Railways. We hereby offer to supply the following items at the prices and within the period of delivery indicatedbelow :

Price Per unit Total value of offer Terms of DeliveryItem No Description Specification Unit Qty. F.O.R. Destination (in Indian Rupees) Payment Period

1 2 3 4 5

(In Indian Rupees)

6 7 8 9

Break-up of price In ‘Column-6 (In Indian Rupees)

Packing andEx-factory price Excise duty Other Levies Sales tax forwarding in F.O.R. Station of Freight to Insurance charges. F.O.R. Total

Detail despatch price destination (if any) Destination (in Indian Rupees)

a b c d e f g h i j

Breack-up Ex-factory price in ‘Column-10 (a) (in Indian Rupees)

Gross weight and dimen- of package per unit

11 12C.I.F. value of imported equipment/components

Duties on11-a

Other levies Incidentals Value added component in India

Total Ex-factory Contry or origin from where price components are imported

a b c d e f g

Value in Indian Rs.

% age

Stores Labour Overheads & others

2. It is hereby certified that we have underetood the Instructions to Tenderers, and also the General and Special Conditions of Contract attached to the tender and have thoroughly examined specifications drawings and/or pattern. quoted in the ‘Schedule of Requirements and are thoroughly aware of the nature of stores required and our offer is to supply stores strictly in accordance with the requirements and according to the terms of the tender. We agree to abide soley by the General and special Contitions of Contract and other conditions of the tender in accordance with the tender documents if the contract is award to us.

3. We hereby offer to supply the stores detailed above or such portion thereof, as you may specify in the acceptance of tender at the price quoted and agree to hold this offer open for acceptance for a period of 150 days form the date of opening of tender. We shall be bound by the communication of acceptance despatched within the prescribedtime.

4. Earnest Money/Bid Guarantee for and amount equal to.................................is enclosed in the form specified in Clause-6 of the ‘Instructions to Tenderers’.Dated.....................................................20

Note- (i) The tenderers may prepare their own offer forms as per this proforma. Signature and seal of Manufacturer/Tenderer(ii) No charge in the proforma is permissible.(iii) The tenderers should Indicate whether they possess the necessary industial licence same from Government of India for Manufacturing and marketing the items offerd.

If where a collaboration with a foreign firm for manufacturing of the items offered is involved the details of the smale should be indicated.(iv) No erasurers or alterations in the text of the offer are permitted. Any correction made in the offer shall be initialled by the tenderer.(v) The detailed break up of ex-factory price should be indicated here and if so required by the purchaser the tenderer shall produce satisfactory proof in regard to the

reasonableness of the same.(vi) The foreign exchange needed for the import of the components and import licence where necessary, should be arranged by the suppliers The purchaser will, however

render assistance required in this regard (Clause-18 of instructions to Tenderers):(vii) Figures in Columne 6,7,10 &11 Should be both in figures and words.

(viii) Tenderers offering indigenous goods, (Group A & B offers) may also take into account in their bids any benefits available for supplies agains IDA/IBRD Credit through international competetive Bidding, regarding deemed exports after ascertaining from the appro priate Govemment agency/agencies.

ANNEXURE-3

PROFORMA FOR PERFORMANCE STATEMENT(FOR A PERIOD OF LAST 3 YEARS)

(Please see clauses-4.2 (a) of‘Instruction to Tenderers’)

Tender No.........................................................................Date ofOpening............................................................Time.................................................HoursName of theFirem....................................................................................................................................................................................................................

Date or completion Has the equipmentSL NO. Order placed by Order No. Description and quantity Value of of delivery Ramarks indicating been satisfactorily

(full address of purchaser) and date of stores ordered order ..................... reasons for late delivery commissioned andAs per Actual if any is it giving trouble

contract free service?

Manufacturer/TendererSignature and seal of the

ANNEXURE-10(Please see clauses-16.2 of‘Instruction to Tenderers’)

PROFORMA FOR INDICATING PARTICULARS OF CARGOES FOR WHICH SHIPPING SPACE IS REQUIRED TO BE ARRANGED BY THE SHIPPING CO-ORDINATION AND CHARTERING

ORGANIZATION OF THE MINISTRY OF TRANSPORT

Cargo availability,Name of the Name of the whether shipload Period over Loading Port Discharge Port Nature of Any special

S Supplier with consignee with or parcel. if ? ? conditionNo telegraphic/ telegraphic/ Description Quantity parcels, size of ?

1

Postal address

2

Postal address

3 4 5

parcels

6 7 8 9 10 11

Manufacturer/Tenderer

Note - This form should be filled in and sent (in duplicate) to the Chief Controller ofChartering (in respect of bulk cargoes) and the Shipping Co-ordination officer

(inrespect of Generalliner cargoes). Department of surface Transport, Ministry of Transport, New Delhi,

with a copy to theExecutive Director, Railway Stores, Ministry of Transport, Department of

Raiways, Railway Board, RailBhawan, New Delhi-110001, INDIA as soon as possible after the relevant contract is finalised.

Signature and seal of the